The T1 Mall of Tallinn will go bankrupt after the Supreme Court rejected an appeal by AS Tallinna Moekombinaat contesting the termination of reorganization proceedings.
The Supreme Court decided to reject an appeal by AS Tallinna Moekombinaat, the owner of T1 Mall of Tallinn, contesting the ruling of the Harju County Court to terminate the reorganization proceedings of AS Tallinna Moekombinaat.
In connection with this, the court order terminating the reorganization proceedings came into force, meaning T1 will go bankrupt.
On February 15, AS Tallinna Moekombinaat, the subsidiary of listed Estonian realtor Pro Kapital Grupp, contested the ruling of Tallinn Circuit Court not to satisfy the appeals of Tallinna Moekombinaat and its three creditors against the ruling by which Harju County Court decided to terminate the reorganization proceedings of Tallinna Moekombinaat.
On Monday, the Supreme Court decided not to take the appeal into proceedings. Due to this, the court ruling terminating the reorganization proceedings came into force. Without the reorganization proceedings, AS Tallinna Moekombinaat is not capable of fulfilling its obligations and has become permanently insolvent, Pro Kapital told the stock exchange.
T1 will continue its daily work during the bankruptcy process. The center's largest creditor, Lintgen, is waiting for the center to be put on sale and is also interested in purchasing it. The center will reopen next week when restrictions are lifted on Monday.
Editor's note: This article was updated to include details about the future running of the store.
Editor: Helen Wright