Oscar Properties chair departs as bondholders demand repayment (updated)

Oscar Properties Holding AB

26/04/2024 08:40

(Adds share move in paragraph 3, analyst comment in paragraph
4)
       April 26 (Reuters) - The chair and another board member
at Oscar Properties  OP.ST  are leaving the group, the
struggling Swedish landlord said late on Thursday, as its
problems continue to deepen.
    The statement followed news that holders of its senior
unsecured bonds were seeking immediate repayment of some 884
million Swedish crowns ($81 million).
    Shares in the property group were down 30% in early trade on
Friday, while the stock has lost over 99% of its value since
peaking in 2017. 
    "It is a very bad sign that board members are leaving, the
ship really seems to be sinking," said Carlsquare analyst Bertil
Nilsson. 
    Chair Peter Norman and board member Markus Dragicevic
informed the company of their resignation, Oscar Properties said
in a statement, leaving only founder Oscar Engelbert on the
board, according to its website.
    The creditors have said they intend to file for bankruptcy
of the company on Friday if payment is not made, Oscar
Properties said, adding a constructive dialogue was ongoing.
    High debts and interest rates combined with a slowing
economy, have hit many European property companies, with the
sector in Sweden among the worst affected.
    The problems at Oscar Properties were exacerbated in recent
quarters by some of its creditors demanding immediate repayment
of loans, and two applications for it to be declared bankrupt,
both of which were later withdrawn.
    On Monday, Oscar Properties said the company had exhausted
more than half of its share capital, and that it would call an
extraordinary shareholder meeting in accordance with Swedish
company law to consider its financial viability.
    The landlord was set to post its fourth quarter 2023 results
on Friday, after postponing publication twice. It did not
immediately respond to a query whether those would be delayed
again.
   ($1 = 10.8638 Swedish crowns)

 (Reporting by Greta Rosen Fondahn, Additional reporting by
Marie Mannes
Editing by Tomasz Janowski)
 ((Greta.RosenFondahn@thomsonreuters.com))