In accordance with Oscar Properties' press releases on October 23, 2023, November 8, 2023 and November 27, 2023, the company has received notice from DNB and junior lenders regarding the termination of secured loans of approximately SEK 2.2 billion that the subsidiaries have raised and which the company has entered into a surety bond for immediate payment as a result of non-payment of interest and fees. Furthermore, the subsidiaries are subject to an ongoing lien realization, Oscar Properties writes in a press release.

The company has now agreed with DNB and junior lenders that the loan is to be repaid through a sale of the underlying properties to Erik Selin Fastigheter through subsidiaries for a purchase price of approximately SEK 2.2 billion, which means that the company can resolve the loans to DNB and junior lenders linked to the portfolio.

According to the company's latest valuation, the underlying properties have a value of approximately SEK 3 billion. In companies where sales are below book value and equity is used up, a control balance sheet will be prepared. Provided that Erik Selin Fastigheter obtains financing and the transfer is carried out, the ongoing lien realization ceases.

"We are of course happy that we were able to resolve our loans of a total of approximately SEK 2.2 billion to both our senior and junior lenders connected to this portfolio. That the price ended up significantly below the book value is unfortunately not unusual in a forced mortgage realization. We had would have liked to continue owning these properties, but our senior bank DNB wanted their loans repaid," says Oscar Properties CEO Carl Janglin.

The company will now immediately continue the discussion with owners and remaining lenders on how the equity can be restored and new capital added to enable continued operation, which may also lead to further reductions in organization and central costs. Corporate restructuring can also be a possible way out, the company writes in conclusion.