On 3 April 2020, AS Pro Kapital Grupp (Pro Kapital) notified about the initiation of reorganization proceedings of its subsidiary, AS Tallinna Moekombinaat. On 7 May 2020, Pro Kapital announced that AS Tallinna Moekombinaat had submitted a reorganization plan for the acceptance of its creditors, outlining a brief summary of the measures to be applied in the plan.
Substantial majority of the creditors voted for the acceptance of the plan. However, the claims of the creditors who voted for the plan, were not sufficient to get the plan approved. On 2 June 2020 AS Tallinna Moekombinaat submitted an application to the court to approve the reorganization plan without the prior acceptance of the plan by the creditors.
The court has decided to go on with the reorganization proceedings by appointing two experts to evaluate the reorganization plan. The experts have to provide their opinion by 22 July 2020. The court will decide on the approval of the reorganization plan not later than on 10 August 2020.
The court can approve the reorganization plan, if at least one of the experts finds that the reorganization of the company is likely to succeed. If the court will not approve the reorganization plan, the reorganization proceedings shall be terminated, however such decision will be subject to appeal.