Euro Habitat asks Planorama buyers to waive delay penalties and to keep their contracts

Euro Habitat, the developer of the Planorama project has hired BSR Europe as project manager, to help them weather the difficult period they are going through. However the plan put together by BSR would only be successful if all the parties involved in the contract came to an agreement within two weeks at most, a press release by Euro Habitat states. If talks with all the customers lead to a positive outcome, the Planorama complex will be ready to receive its tenants in May 2010 (the T3 building) and December 2010 for the T4 building, developers say.

Some of the Planorama buyers that terminated their contracts have already received their money back. However, if a large enough number of customers were to terminate their contracts and ask for their money back, the company would become insolvent, putting all the buyers at risk of never getting their money back. BSR thinks that the best solution is for all the buyers to agree to waive their claims for delay penalties, to allow the project to go through as initially planned by taking out the loan from Piraeus Bank and continuing development.

According to Euro Habitat, the preliminary conditions posed by Piraeus to grant the loan include a positive and balanced cashflow, and the buyers" acceptance of the new deadlines: block T3 - end of May 2010; block T4 - end of December 2010. If all the buyers of apartments situated in the T3 and T4 buildings will come to an agreement concerning the new deadlines and the waiving of the delay penalties, Piraeus Bank will unlock the loan and Euro Habitat will invest another 2.5 million Euros in the project. Eurohabitat will reimburse buyers of apartments in the T3 building which requested the reimbursement of their money, in order to unfreeze the accounts, and delivery will begin once the final tests are completed.

In the case of customers that bought homes in the T4 building, a new general contractor will be appointed by auction, within at most 60 days after the bank signs the new loan agreement with Euro Habitat.