Exchange, Markets and Companies, Real Estate

On April 3, 2020, AS Pro Kapital Grupp announced the initiation of reorganization proceedings of its subsidiary AS Tallinna Moekombinaat, Pro Kapital told the stock exchange.

On June 15, Pro Kapital announced that the court has appointed experts to evaluate the plan, who must submit their opinion on the reorganization plan by July 22 at the latest, and that the court would decide on the approval of the plan by August 10 at the latest.

On July 30, Pro Kapital notified that the Tallinn Circuit Court had annulled the ruling of the county court in connection with the appointment of experts and referred the matter back to the county court for a new decision.

On August 14, the county court has made a new ruling in the matter. The county court has terminated the reorganization proceedings because it has established that AS Tallinna Moekombinaat is allegedly permanently insolvent.

AS Tallinna Moekombinaat disagrees with the views expressed in the August 14 county court ruling and intends to dispute it.

According to Pro Kapital, both experts appointed by the court in the reorganization proceedings have thoroughly analyzed the economic situation of the company and concluded that the company is not permanently insolvent and the problems can be overcome with the help of the reorganization plan.

Also, during the reorganization procedure, the company's financial results have been better than those outlined in the reorganization plan, all the company's ongoing obligations have been fulfilled and the company continues to fulfill new obligations.