Oscar Properties, who have built expensive condominiums in Stockholm, sweden, has been at the close of observationslista since the beginning of april. The reason is that the auditors have warned that there is a ”significant risk” that the company would not be able to continue with the business.
the Auditors pointed out that the bond loan of around half a billion kronor, which is due in september, will need to be renegotiated.
now completed, and where the bondholders have agreed to extend the loan for two years, prime residential builder in a press release.
But it comes with a price tag: on one hand, Oscar Properties pay a higher rate of interest and pay back more than the nominal amount of the loan. The sum is increased by two percentage points every six months until the loan is paid, with a ceiling of 108%.
the Company must also repay a quarter of the loan, 112,5 million, at the latest, at the end of the year.
committed not to distribute any dividends until the loan is paid.
Oscar Properties is a residential builder which has been hit hardest by the market stalled. The company sold only 79 apartments in the last year, a race in comparison with the peak years of 2015 and 2016 then they sold between 400 and 500 apartments.
the Company made a loss of nearly a half billion for 2018.
also Read: Oscar Properties moved to observationslistan