On 27 March 2019, the District Court of Stockholm approved the application for company reorganisation for Real Holding i Sweden AB (publ) (“Real Holding”). The Court appointed Mr. Lars Eric Gustafsson from Hamilton Law Firm as administrator. Real Holding is a publicly traded real estate company, whose property portfolio is valued to approximately SEK 500 million. The properties mainly consist of commercial properties with development potential in growth areas. Due to an unbalanced capital structure, entailing a balance sheet with a high loan-to-value ratio together with unfavorable loan terms, Real Holding has become insolvent. The debt structure consists of external loans, both with and without adequate security, shareholder loans and bonds. As Real Holding’s operating net has been positive in recent years, our preliminary reorganization strategy will be to renegotiate the loan terms, primarily with respect to unsecured creditors, to relieve the company from its current unsustainable interest burden. We will also initiate negotiations with creditors with the purpose to enter into a voluntary composition agreement.