Comment to Sixth Street Partners and Lintgen Adjacent Investments S.à r.l press release concerning the restructuring of T1 Mall of Tallinn

AS Pro Kapital Grupp has notified about the initiation of reorganization proceedings of its subsidiary AS Tallinna Moekombinaat by the ruling of the Harju County Court issued on 3 April 2020. On 7 May 2020 AS Tallinna Moekombinaat presented the reorganization plan to the creditors for review and formation of position. The majority of the creditors have already voted in favor of the reorganization plan.

On 18^th of May 2020 TPG Sixth Street Partners and Lintgen Adjacent Investments S.à r.l (hereinafter TPG Sixth Street Partners) issued a press release stating they will vote against the restructuring plan of AS Tallinna Moekombinaat and called other creditors to also vote against the plan.

TPG Sixth Street Partners has not been acting in good faith towards AS Tallinna Moekombinaat and its creditors, tenants and collaboration parties.

By making a misleading public press release it has become apparent that TPG Sixth Street Partners goal is to make the restructuring plan of AS Tallinna Moekombinaat fail and force AS Tallinna Moekombinaat into bankruptcy. TPG Sixth Street Partners actions are harming the business of AS Tallinna Moekombinaat and therefore interest of all creditors. TPG Sixth Street Partners has been avoiding AS Tallinna Moekombinaat and the restructuring advisor’s attempts to have any dialog with them concerning the restructuring plan.

TPG Sixth Street Partners fails to mention or clarify in their press release the following: TPG Sixth Street Partners is a secured creditor and in case of bankruptcy of AS Tallinna Moekombinaat it would be one of the very few creditors who would receive any satisfaction to its claims and to the largest extent.  All other unsecured creditors would not receive anything in case of bankruptcy of AS Tallinna Moekombinaat. Therefor the restructuring plan which foresees payment of 40% of unsecured claims to the creditors is actually in the interest of all unsecured creditors, contrary to what TPG Sixth Street Partners claims .

TPG Sixth Street Partners unprecedented public call to all other creditors is therefore nothing more than an attempt to force the restructuring plan of AS Tallinna Moekombinaat to fail and to secure TPG Sixth Street Partners interest to the fullest extent possible, doing so at the expense of other unsecured creditors of AS Tallinna Moekombinaat, who would receive almost nothing in the bankruptcy proceedings. The law has foreseen the possibility that a large bad faith creditor might try to block restructuring for its personal interests and enabled the court to overrule such creditor’s attempts.

The reorganisation process involves only AS Tallinna Moekombinaat and has no direct influence to any other group company of AS Pro Kapital Grupp. None of the companies in AS Pro Kapital Grupp concern have secured any liabilities of AS Tallinna Moekombinaat.

Allan Remmelkoor
Member of the Board
+372 614 4920
prokapital@prokapital.ee