Sweden’s Oscar Properties faces bankruptcy application over settlement dispute, ET RealEstate
GDANSK: Sweden‘s Oscar Properties said on Monday that Brf Innovationen, a housing cooperative, had filed an application for the real estate firm to be declared bankrupt, citing a breach of a settlement agreement.
Oscar Properties said in a statement that it disputes the bankruptcy application and may seek formal restructuring in its court response.
It had previously evaded bankruptcy in a similar situation, when Brf Innovationen retracted its earlier application in January after the companies reached a settlement.
Oscar Properties’ stock has lost more than 99% of its value since peaking in 2017. Rising interest rates and slowing demand have left property companies with large debts from loans they took out when borrowing costs were low.
