Banks, Estonia, Financial Services, Markets and Companies

Lars Nilsson – the head of Swedbank Baltic unit that manages high business risks noted that the bank had been actively involved in looking for solutions with Glaskek since last autumn.

Nilsson said that the bank and Glaskek had been jointly analyzing possibilities to restructure the company, but after an in-depth study, the bank no longer sees a possibility to restructure Glaskek into a viable business by restructuring.

"Therefore, the issue of filing the company for bankruptcy surfaced," noted Nilsson.

However, the bank says that it aims to keep the company's viable business in operation so that it could be sold to new owners as an integrated complex.

"Therefore, the bankruptcy would not necessarily mean selling the company's individual assets, rather than a clearly regulated legal process in the course of which creditors would be able to reclaim some of their loans," added the banker.