ЕС – Балтия, Рынки и компании, Финансы, Эстония

The fate of Sportland International Group, which has turnover of 1.5 billion EEK, lies in the hands of Swedbank Eesti, Latvian DnB Bank and Lithuanian SEB Bankas. It isn’t officially known what sums banks have tied in Sportland but considering that the debt burden was over 400 mln kroons in 2007 already, the debt of the company that has expanded aggressively may have doubled by now.

Anti Kalle and Are Altraja, owners of Sportland International Group AS, announced on Monday that they postponed redemption of the company’s bonds till January 29, 2010. Almost the whole 50 mln EEK issue is sitting in Swedbank’s Private Debt Fund and a bit in pension funds.

The involved parties do not reveal in what stage is the restructuring of the company that has lasted for several months.

Still, Swedbank Private Debt Fund (PDF) head Peeter Piho confirmed that in the next two months that were given to Sportland to redeem its bonds, the fate of the company would be decided. “I hope that during that time a decision comes on Sportland,” he said.

Sportland International Group has 19 stores in Estonia bearing the Sportland brand, 5 of Netosport brand, 2 of 100% Sports brand, 4 Timberland stores, 9 West Sport stores. The 2007 economic reports stated that the group was operating also in Latvia, Lithuania, Russian, Ukraine and Finland.

Its 2007 turnover was 1.53 bln kroons and loss 28.2 mln kroons.