The management of real estate companies Sago and INTF Investicija initiates bankruptcy procedure because these companies didn’t reach an agreement with the bank financing their activities from 2007. The above mentioned companies cannot fulfil their obligations to the bank, which financed their real estate projects, and to Invalda LT. There are no other significant creditors.
“We think that the bankruptcy procedure should properly protect interests of creditors and clients”, – Gediminas Rimkevicius, the director of Sago and INTF Investicija, said.
“Our businesses operate independently and, speaking about risk management, they are separate units. Invalda LT doesn’t guarantee for liabilities of group companies. Sago and INTF Investicija started real estate projects before the financial crisis and today these companies are the last in the real estate sector having non-competitive projects”, – Darius Sulnis, the president of Invalda LT group which invested into shares of Sago and INTF Investicija, said.
The bankruptcy of Sago and INTF Investicija will not negatively influence financial results of Invalda LT because these companies were accounted at null value in the financial statements of Invalda LT. When the bankruptcy case is initiated these companies will have not been classed as Invalda LT group companies, therefore consolidated liabilities of Invalda LT group should decrease by LTL 36.5 million, and equity should increase by LTL 6.8 million.