Oscar properties – new threat of bankruptcy

There is new chaos in the real estate company Oscar Properties.

The board has resigned, a new threat of bankruptcy looms – and the stock is slaughtered.

The company is now required for 884 million – immediately.

Just a few weeks ago, Oscar Properties avoided bankruptcy at the last moment. Just an hour before the district court was to announce its decision, the real estate company paid the million dollar claim it owed.

But the storm surrounding the company has not abated. Now a new, urgent, threat of bankruptcy has arisen, several media write.

Demand for 884 million

After the stock market closed on Thursday, a bond owner announced that it had canceled a loan of SEK 884 million – with a demand for immediate payment.

“The owners intend to file for bankruptcy tomorrow (April 26) if payment has not been made. The company is conducting a constructive dialogue with the bondholders to find a solution,” writes Oscar Properties in a press release.

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Later in the evening, two board members, chairman Peter Norman and Markus Dragicevic, announced that they are leaving the board.

“Unfortunately, the company has had difficult timing when entering the real estate market, and the sharp interest rate increases that have occurred have resulted in the board assignment being changed recently to deal with issues for which there are certainly more suitable candidates,” says Norman in a press release.

The stock plummeted after the announcement

In addition to not having a chairman, Oscar Properties also lacks a CEO, as Carl Janglin left the company in February and has not been replaced.

The owner and founder Oscar Engelbert says in the same press release that they will “as soon as possible” provide information on how the company will look in the future. Now he is the only one left on the board.

“I want to thank Peter for his honorable contribution as chairman of the board during a turbulent time in the company and Marcus for his contributions to the board. The company must come back as soon as possible regarding the composition of the board and management,” says Oscar Engelbert.

At the time of writing, the stock is down 34 percent in today’s trading. In total, it has declined over 99 percent since the peak in 2017.

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