Stefman H. Hilmarsson and Ragnar H. Hall
Arngrimur Isberg, district court judge, declined the request of Baugur Group today of a continuance of the moratorium of the »»
Stefman H. Hilmarsson and Ragnar H. Hall
In the ruling says Arngrimur, that the plans of Baugur Group about the financial reorganizing are not realistic and so not likely to restore new order on the finances of the company. From the data of the case, are the debts of Baugur extremely large and the company says that the assets in it´s possession have reduced in value greatly in the past terms because of the situation on the global financial markets. Then the subsidiary of Baugur in England was removed from the company and set under the control of the authorities.
There is a reference to the views of Baugur, that the company feels that it is essential to wait for a while and protect the companies asstes in hopes of that the financial markets would resolve in a positive manner. Also it is essential for the company to start emergency contract negotiations. The judge says that it is impossible that neither of these topics are made to set new order on the finances of baugur. The former one includes in fact to just wait for everything to turn better, without saying anything about when that would be expected.
This conclusion of the district court of Reykjavik is final, and means that any claim owner can now demand that the company will be put into the process of bankruptcy, but both Islandsbanki and Glitnir have declared the opinions of that if the estate is to be liquidated. The board of Baugur can also request a bankruptcy but the board meeting was held this afternoon.
Stefan Hilmarsson, assistant CEO of baugur, did not want to comment on the ruling when this article was published. Ragnar H. Hall, lawyer of Baugur, said when asked about what this ruling means, that it is possible that the parent company, Baugur, will be bankrupt as well as it´s subsidiaries.
When the moratorium was requested in the beginning of February, was also a request that 14 subsidiaries would be granted moratorium. The later request was dismissed. The subsidiaries in question are BG Ventures, M Holding, F-Capial, Solin Skin, Milton, Unity Investments, M-Invest, BGE holdings, Sports Investments, BG Newco-5, A-Holding, Styrkur investment and Stodir Investment.
The ruling of the district court of Reykjavik.
News Article by noname
Original Article in Icelandic
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Translated by Anya