Sweden's Oscar Properties says CEO and CFO resign (updated)

Oscar Properties Holding AB

19/02/2024 19:13

(Adds analyst comment, background)
       STOCKHOLM, Feb 19 (Reuters) - Oscar Properties  OP.ST 
said on Monday its CEO and chief financial officer had informed
the company they were resigning from their posts. 
    Oscar Properties, one of several highly indebted Swedish
real estate groups buckling under soaring borrowing costs and
slower demand, said in a statement Carl Janglin would stay on as
CEO until a successor had been appointed. 
    Janglin and CFO Magnus Thimgren both took on their jobs last
year. 
    "We thank them for their efforts during this difficult
period. The work on liquidating the company's remaining debt
obligations and securing the company's assets now continues,"
the company said.
    The problems at the relatively small player have been
exacerbated in recent quarters by some creditors demanding
immediate repayment of loans, and two applications for it to be
declared bankrupt, one of which was later withdrawn.
    Carlsquare analyst Bertil Nilsson called the news of the
resignations "ominous". "The fact that the CEO and CFO are
leaving shows that Oscar Properties' business is rapidly
shrinking after the forced property sales," he said. 
    Oscar Properties last month had to sell real estate at a
discounted price of 2.2 billion crowns ($211 million) to repay
loans from Norwegian bank DNB and other smaller creditors.
    The unfolding property market crisis in the Nordic country
is threatening to engulf the economy. 
($1 = 10.4044 Swedish crowns)

 (Reporting by Anna Ringstrom and Marie Mannes, Editing by Mark
Potter and Tomasz Janowski)
 ((anna.ringstrom@thomsonreuters.com;))