(Reuters) – Sweden’s Oscar Properties said on Monday that Brf Innovationen, a housing cooperative, had filed an application for the real estate firm to be declared bankrupt, citing a breach of a settlement agreement.
Oscar Properties said in a statement that it disputes the bankruptcy application and may seek formal restructuring in its court response.
It had previously evaded bankruptcy in a similar situation, when Brf Innovationen retracted its earlier application in January after the companies reached a settlement.
Oscar Properties’ stock has lost more than 99% of its value since peaking in 2017. Rising interest rates and slowing demand have left property companies with large debts from loans they took out when borrowing costs were low.
(Reporting by Jesus Calero in Gdansk; editing by Milla Nissi)
