Restructuring and Insolvency News

Real Holding in company reorganisation

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.