Court initiates PlusPlus Capital reorganization process
The Harju County Court has entered into proceedings debt collector PlusPlus Capital's rehabilitation request and designated Toomas Saarma as the rehabilitation consultant.
PlusPlus Capital board member Kaarel Raik said the next step in the process is the preparation of a restructuring plan and its coordination with investors. "The purpose of the restructuring is to ensure the sustainability of PlusPlus Capital's business operations and to find a solution acceptable to all parties," Raik explained.
Raik confirmed that contact would be made with every investor.
On December 27, AS PlusPlus Capital submitted a request to the court to initiate restructuring proceedings because its subsidiary, PlusPlus Capital Financial S.à r.l., registered in Luxembourg and listed on the Frankfurt Stock Exchange, failed to make payments on bonds worth €100 million with an annual interest rate of 11 percent.
PlusPlus Capital is a company that manages financial claims, restructuring overdue debt portfolios purchased from financial sector and telecommunications companies in the Baltic states and Finland. PlusPlus Capital finances its acquisitions by attracting private and institutional investments.
Strapped for cash, PlusPlus proposed investors swap out their securities for new ones on which interest is due in a year's time in November of 2022. Those who refused, received an offer for 70 percent of their price and interest accrued.
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Editor: Marcus Turovski
