Oscar Properties chair departs as bondholders demand repayment

Oscar Properties Holding AB

26/04/2024 08:08

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).
    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, and a wilting 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both of which were later withdrawn.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.
   ($1 = 10.8638 Swedish crowns)