Bankruptcy petition against Oscar Properties withdrawn, ET RealEstate

March 11, 2024

<p>Representative Image</p>
Representative Image

Sweden‘s DSAM Sverige has withdrawn its bankruptcy petition against rival real estate company Oscar Properties after receiving confirmation that its claims had been paid, the Stockholm District Court said on Monday.

Shares in Oscar Properties were up about 40% to 0.58 Swedish crowns ($0.0567) at 1217 GMT after the court’s announcement on Monday, but are still trading at a fraction of their historical highs reached in 2017.

Oscar Properties was not immediately available for comment.

DSAM had received documentation from Oscar Properties regarding payment of its claims, its lawyer said in an email to the court seen by Reuters.

Oscar Properties has been hard hit by a real estate market crisis in Sweden, as high interest rates and slowing demand left companies struggling with large debts they took on when borrowing costs were low.

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creditors demanding immediate repayment of loans, and two applications for it to be declared bankrupt, one of which was withdrawn in January.

Earlier this year, Oscar Properties opted to sell real estate at a discount to repay loans from Norwegian bank DNB and other smaller creditors. The company’s CEO and the chief financial officer both resigned last month.

  • Published On Mar 11, 2024 at 06:30 PM IST

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