Bailiff puts Kuressaare Resort Hall building up for sale

A bailiff has put the Kuressaare Resort Hall building (Kuursaal) up for sale with a starting price of €490,000. The building is owned by companies belonging to Vjatšeslav Leedo and Arti Arakas.
Bailiff Rocky Albert listed the resort hall building, located at Lossipark 1 in Kuressaare, for auction on a bailiffs and bankruptcy administrators' auction platform in mid-January. Built in 1889, the building is situated in Kuressaare Castle Park, with a starting price of €490,000 and a deposit requirement of €49,000 for participants.
The building, which spans nearly 1,000 square meters, is owned by Tolli Vara OÜ. Of this, 75 percent belongs to Vjatšeslav Leedo's company, Holostovi Kinnisvarahaldus, while 25 percent is owned by Arti Arakas' firm, Greatway.
The auction is being held to satisfy claims secured by Swedbank's mortgages against Holostovi Kinnisvarahaldus, amounting to €450,000.
Currently, the building houses a restaurant and guest rooms. According to the auction listing, the rental agreement with the tenant, signed in 2011, is valid until 2037, but it can be terminated under conditions outlined in the Law of Obligations Act.

The listing highlights the tenant's assessment that the building's exterior structures are in a deteriorating condition: parts of the facade cladding are rotten and paint has peeled off, the zinc sheet roof is rusted and leaking, rainwater systems are worn out and some doors and windows need replacement in the near future.
The auction will conclude on February 17.
In December, Pärnu County Court found the former management of Saaremaa Laevakompanii (SLK), including its supervisory board chairman Vjatšeslav Leedo, guilty of causing SLK's insolvency.
Holostovi Kinnisvarahaldus AS was accused of using a falsified guarantee document. The court imposed a conditional financial penalty of €250,000, which will not be enforced if the company commits no new intentional crimes during a two-year probationary period.
The court also ordered the confiscation of €4.1 million in criminal proceeds from Holostovi Kinnisvarahaldus, to be paid within three months of the ruling becoming final.

Previously, Pärnu County Court had confiscated assets acquired through criminal activity and imposed judicial mortgages on Holostovi Kinnisvarahaldus' properties in favor of the Estonian state. The December ruling left these decisions unchanged until claims totaling €773,180 are satisfied.
Leedo and Holostovi Kinnisvarahaldus' defense attorney, Elmer Muna, stated in December that they would appeal the decision to the circuit court and continue to fight for an acquittal.
On Monday, Pärnu County Court informed ERR that defense attorney Elmer Muna, as well as Jaanus Tehver, who represents Grete Kundratsi (convicted of document forgery), victims' representative Marko Kairjak and defense attorney Oliver Nääs for Lennart Viikmaa, have all filed notices of appeal. The court is currently preparing the reasoned judgment, which will be completed by February 7. Afterward, the parties will have 30 days to submit an appeal to the Tallinn Circuit Court.

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Editor: Karin Koppel, Marcus Turovski