Major T1 shopping mall creditor rejects restructuring plan

T1 Mall of Tallinn.
T1 Mall of Tallinn. Source: ERR

Two major creditors of the troubled T1 Tallinn shopping mall announced they have rejected the restructuring plan of Tallinna Moekombinaat, the mall's owner.

In early May, Tallinna Moekombinaat's parent company AS Pro Kapital Grupp informed stock exchange it had submitted a 10-year restructuring plan to the creditors, Sixth Street Partners and the associated Lintgen Adjacent Investments S.a r.l. (Lintgen).

According to Sixth Street Partners, Lintgen financed the construction of T1 Mall of Tallinn in 2018 and is its principal creditor. Both Lintgen and Sixth Street Partners find that the results of the mall are below expectations, even though it was opened during an economic growth cycle. The companies also claim the owners have breached their contractual obligations and not paid loan interest.

Lintgen will reject the mall's restructuring plan, as they see it unjust for creditors and also not in the interests of the mall's lessees and other cooperation partners.

"The proposed restructuring plan will leave creditors at a disadvantage, as almost all are paid back less than a half of the borrowed amount according to it. For example, a creditor to whom Tallinna Moekombinaat owes €15,000, will be repaid €6,000 in instalments only by 2030," Lintgen remarked.

Creditors can vote on the restructuring plan until 6 p.m. on May 26.

Lintgen added they will directly contact creditors to discuss the plan and alternative options.

Pro Kapital's reorganization plan focuses on restructuring creditors' claims and adjusting the T1 business model.


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Editor: Anders Nõmm

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