Sweden's Oscar Properties sells real estate at discount to pay creditors (updated)

Oscar Properties Holding AB

15/01/2024 15:24

(Adds details throughout, share move in 8th paragraph)
       Jan 15 (Reuters) - Oscar Properties  OP.ST  said on
Monday it has agreed to sell real estate for 2.2 billion Swedish
crowns ($214 million) to repay loans from Norwegian bank DNB
 DNB.OL  and other creditors.
    Oscar Properties in October said high interest rates had
drained liquidity, and its survival hinged on attracting new
capital.
    "We would have liked to have continued to own these
properties, but our senior bank DNB wanted to have its loans
repaid," CEO Carl Janglin said in a statement on Monday.
        The real estate involved in the forced sale has an
estimated value of around 3 billion crowns, the company said. 
  
        It said it would now continue talks with owners and
remaining lenders on how to restore equity and add new capital. 
  
       "(This) may also lead to further reductions in
organization and central costs. Corporate restructuring can also
be a possible way out."
  
    It said the property sale is dependent on the buyer,
property group Erik Selin Fastigheter, securing financing for
the deal.
        Shares in the 
    debt-laden company
     were up 46% at 1505 GMT, however still down 73% in the past
12 months. 
  
     
  
            ($1 = 10.2950 Swedish crowns)

 (Reporting by Greta Rosen Fondahn; editing by Terje Solsvik)
 ((Greta.RosenFondahn@thomsonreuters.com))