sandra.taimre @ aripaev.ee
Estonian real estate and contruction group Q Vara, which loss totalled over EEK 20 mln in the first half-year, blames nosy investors in payment diffculties.
As a result of the delayed capital raising transaction for the development of Terminal No. 11 project, a subsidiary of Q Vara, OÜ Q Ehitus experienced some payment delays to the Tax Board and suppliers in the second quarter of 2008, the company announced on Tallinn Stock Exchange.
Namely, the management of Q Vara estimated that the negotiations would be finished in spring, and proceeding from this prognosis, the development activities of Terminal No. 11 were continued. Due to a very thorough analysis by the investors, the final investment was not made by the time several payments were due that caused payment delays, which could not have been eliminated immediately from other cash flows.
For Q Vara disappointment the potential investors began searching through the details of Teminal No. 11. The tranascation announced in spring with HIH Global Invest GmbH isn't carried out until today. Q Vara hopes the transaction will be finished in August-September. Q Vara Group's consolidated net loss of the first half of 2008 was EEK 20.278 mln. A year ago the profit totalled EEK 36.961 mln. Q Vara turnover fell from EEK 133.7 mln to EEK 42.4 mln.