Investment company’s Invalda group sold shares of Lithuanian real estate project operators Broner, Nerijos Bustas, Saules Investicija and Latvian Dommo Grupa. The companies were sold for a symbolic 1 litas each. Management of these companies initiates bankruptcy process for them.
The projects became unfeasible because of the change in market situation, bank’s decision to cease financing and its refusal to search for constructive solutions in regards to realization of the assets.
“Our publically-available management principles state that separate businesses operate independently and that they operate as separate units in the terms of risk management. Despite that, we often seek for solutions that would guarantee feasibility of our companies. In the current case we support the decision of the companies to initiate the bankruptcy. We do not see any reason to invest into them when they could no longer continue to operate as a going concern after the bank ceased financing. We believe that in this case bankruptcy procedure is an appropriate way to protect the interests of creditors”, said Darius Sulnis, President of Invalda.
He stressed that Invalda was not a guarantor on liabilities of these companies. Investments into these companies were written-down to zero already in 2009. Therefore, Invalda will not suffer any losses from these projects in financial year 2010.
About Invalda AB
Investment company Invalda was established in 1992. The goal of the company – steady long term growth, successful activity development and high long term financial return to the shareholders. Currently Invalda focuses on pharmacy (Sanitas), roads and bridges construction (Tiltra Group, Kauno Tiltai), furniture manufacturing (Vilniaus Baldai), real estate (Invalda Nekilnojamojo Turto Fondas) and IT infrastructure (Positor, Baltic Amadeus Infrastrukturos Paslaugos) segments.
Activities of Invalda group cover Central and East Europe – Poland, Lithuania, Slovakia and Latvia.
Invalda AB shares have been listed since December 19, 1995 (then – at National Stock Exchange); from the January 1, 2008 the company’s shares have been on the Main List of NASDAQ OMX Vilnius stock exchange.