The Stockholm-based housing association Innovationen has withdrawn its bankruptcy application against Oscar Properties.
Newspaper Di.se was the first to report on this decision, citing Innovationen's lawyer. This is also confirmed by a protocol from the Stockholm District Court, which TT has taken part of.
"The case is being written off due to the applicant's withdrawal", writes the Stockholm District Court.
Contact with investment bank
The protocol also reveals that the parties have agreed to cover their own costs in the case.
What awaits Oscar Properties now is unclear. According to CEO Richard Bagge, he has been in contact with an investment bank about future possibilities.
"The plan is to issue a preferential rights issue where creditors are offered to subscribe for shares through set-off in combination with a cash contribution that will be guaranteed by existing shareholders and external parties", he writes in a press release.
The goal is to become a so-called acquisition company with little cash in hand and tax losses of SEK 1.5 billion, which can offer companies that quickly want to be listed on the stock exchange a quick way in.
Prior to Monday's announcement that Innovationen had withdrawn its bankruptcy application, the share in Oscar Properties surged upward in heavy trading on Monday, up 300 percent to 43 öre. This gives a market value of SEK 80 million.
The danger not entirely eliminated
Last week, the district court rejected an application for reconstruction submitted by Oscar Properties, which has had significant financial problems for a long time. This decision was appealed to the Court of Appeal, but the application for reconstruction was also rejected there.
Innovationen's bankruptcy application was based on unpaid compensation claims against Oscar Properties of over SEK 15 million. The parties have chosen not to disclose how this debt is regulated in Monday's settlement.
The danger of bankruptcy is, however, not entirely eliminated. The Tax Authority has also requested that Oscar Properties be declared bankrupt due to a debt of over SEK 2 million, which the Enforcement Authority has not been able to collect.
Negotiations on the bankruptcy application are scheduled for August 22.
