The Harju County Court declared bankruptcy of AS Pro Kapital Grupp’s subsidiary – AS Tallinna Moekombinaat – and appointed Kristo Teder and Indrek Lepsoo as bankruptcy trustees. The first general meeting of creditors will be convened on June 17, 2021.
AS Pro Kapital Grupp previously announced that upon declaration of bankruptcy, control of the subsidiary would be lost and the group would cease consolidating the financial indicators of the subsidiary. In the interim report for the first quarter of 2021, which was released on May 31, the Company announced that AS Pro Kapital Eesti has written off an investment in a subsidiary in the amount of EUR 13 million due to negative equity. of TMK and also due to a regularization event for receivables for a total amount of € 26 million as of December 31, 2020. The end of consolidation has an impact on the consolidated accounts for an amount of € 26 million related to to canceled debts. As of April 30, the subsidiary’s shareholders’ equity was negative at 56 million euros. The derecognition of the negative equity of the subsidiary has a positive effect on the consolidated accounts. Taking into account the share of minority interests, the total estimated impact on the consolidated financial statements of the Company at the end of April is an increase of 26 million euros in the group’s shareholders’ equity. The exact impact will become clear when the subsidiary’s financial reports for May and June are completed, with the Company continuing to consolidate until June 2, 2021.
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