EQS-News
Reorganization Plan for AS PlusPlus Capital Rejected by Harju County Court – Appeal Pending for the Reorganization Plan
- Reorganization plan for PlusPlus Capital rejected by court.
- Appeal pending; majority creditor support noted.
- Company optimistic about avoiding insolvency filing.
EQS-News: PlusPlus Capital Financial S.à.r.l. / Key word(s): Legal Matter Reorganization Plan for AS PlusPlus Capital Rejected by Harju County Court |
Appeal Pending for the Reorganization Plan
Tallinn, Estonia, 7 October 2024. PlusPlus Capital (“PPC”), a leading pan-Baltic and Finnish technology-driven receivables management group, was informed on 4 October
2024 of the denial of the Harju County Court (the “Court”) regarding the homologation of the reorganization plan (the “Plan”) of its parent company AS PlusPlus Capital (the “Parent
Company”), which had received broad support from investors.
The Parent Company finds that the Court has based its rejection to a large extent on incomprehensible grounds, such as the broadly arbitrary and fact-distorting objections by Balcia Insurance SE, which accounts for only 0.2% of all claims covered by the Plan. In contrast, the creditors of the Parent Company, who have expressed their support for the restructuring by voting in favor of the Plan, represent more than 90% of all claims covered by the Plan.
However, as a result of the specifics of the reorganization proceedings of the Parent Company, the majority of creditors who supported the Plan cannot actively participate in the subsequent
proceedings and express their support in favor of the Plan. Dissenting creditors, by contrast, may object to the Plan on an ongoing basis and throughout the entire proceedings.
Kaarel Raik, Member of the Management Board of PlusPlus Capital: “We consider questionable a decision in which the unconstructive criticism of a minority creditor with an insignificant stake
takes precedence over the support of the majority of creditors regarding the feasibility of the reorganization plan of AS PlusPlus Capital and the financial forecasts contained therein.
Accordingly, we will file an appeal against this decision in order to be able to resume the reorganization plan“.