A substantial majority of the creditors of the troubled T1 shopping mall in Tallinn voted for the reorganization plan of the mall's owners, but the claims of the creditors who voted for the plan were not sufficient to get the proposal approved, AS Tallinna Moekombinaat informed stock exchange on Wednesday. However, the company can move forward with the proceedings and ask the court to approve the reorganization plan.
Under the Reorganization Act, a reorganization plan is deemed accepted if at least half of all the creditors who hold at least two-thirds of all the votes (i.e. the volume of claims) vote in favor. If creditors are divided into groups, this requirement must be met in all groups.
The creditors were asked to cast their vote regarding the reorganization plan by 6 p.m. on May 26. A substantial majority of the creditors voted for the acceptance of the plan. However, the claims of the creditors who voted for the plan were not sufficient to get the plan approved.
However, as more than half of the creditors in each of the creditor groups did vote in favour of the plan, AS Tallinna Moekombinaat can move forward with the reorganization proceedings and ask the court to approve the reorganization plan without the prior acceptance of the plan by the creditors. Such application must be submitted to the court by June 2 at the very latest.
The court will decide on AS Tallinna Moekombinaat's application to approve the reorganization plan within 14 days of receiving the respective application.
If the court decides to satisfy AS Tallinna Moekombinaat's application, the court will appoint at least two experts to evaluate the plan. The court can approve the reorganization plan if at least one of the experts finds that the reorganization of the company is likely to succeed. The court will also set a deadline for deciding on the approval of the plan, which cannot be longer than 60 days from the court ruling to satisfy AS Tallinna Moekombinaat's application.
If the court refuses AS Tallinna Moekombinaat's application to approve the reorganization plan, the reorganization proceedings shall be terminated, however such decision will be subject to appeal.
AS Tallinna Moekombinaat's reorganization would help to save the company and the jobs of some 1,000 people. It would also enable AS Tallinna Moekombinaat to satisfy the claims of the creditors to a much larger extent than it would in case of its bankruptcy, the company informed stock exchange.
Editor: Anders Nõmm