Oscar Properties towards bankruptcy at last – the board mocks the creditors

Published 9 August 2024 at 15.51

Economics. Housing giant Oscar Properties is finally headed for bankruptcy after the company's appeal against a restructuring decision was rejected by the Svea Court of Appeal.

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The company has large tax debts and has therefore been filed for bankruptcy by the Swedish Tax Agency. But also by the condominium association Innovationen, which represents residents in one of the two “Northern Towers” at Norrtull in Stockholm.

Oscar Properties recently applied for reconstruction at the Stockholm district court but was refused by the court. The company appealed to the Court of Appeal, which has now rejected the appeal.

On Monday, the district court is expected to make a decision in the bankruptcy case between BRF Innovation and Oscar Properties.

The company's board has actually itself been obliged to request the company in bankruptcy, in order to avoid personal responsibility for the company's debts according to the rules in chapter 25 of the Swedish Companies Act.

The company's board member and CEO Richard Bagge, however, mocks the creditors and is openly scornful in a press release, where he almost seems to brag about how long the company was run with spent capital.

“I hope that Brf Innovationen is satisfied. They have achieved their goal, a probable bankruptcy on Monday. In the event of a bankruptcy, the outcome for them will be zero, zilch as they say in English”, writes Bagge and goes on to point out that the equity has been used up for over a year, which means that a court can decide on recovery.

“What they may not realize is that they may be liable for repayment for the 3 MSEK they received during the past year, through a so-called recovery where the bankruptcy trustee has the right to go back 12 months and demand what they received. So this driving us into bankruptcy – if it comes to that – could be a really expensive bill for our friends in one of the towers”.