Bank of Cyprus has placed one of the island’s biggest hotel groups, Aqua Sol Hotels, under administration over an estimated €200 million debt. Insiders said on Tuesday the group could not meet its loan obligations and that Anelmia Hotels – its subsidiary which was bought in 2000 – as well as nine other companies, also came under administration. Under the loan agreement with the BoC – the island’s biggest lender which almost collapsed a year and a half ago – Aqua Sol Hotels has collateral but also issued bonds with floating charges amounting to some €70 million.

This allows the Bank to go ahead and place Aqua Sol under receivership – something that it has done.  The bonds were issued in November 2009. The companies under receivership belong to major shareholder Yiannis Panayi.

These are: Yuleba, Promitheus Investments, Solterra Developers & Constructions, Raphael Panayis Properties, Polyphimos Hotels, Nike Hotels, M.Y.P. Investments, M. Panayis Investments and Ectoras Properties.

Cyprus Weekly