Tartu county court announced bankruptcy of AS Otepää Golf, Andres Hermet, a trustee in bankruptcy said that the functioning golf club should find new owner pretty fast, ERR News reports.
Reasons for the bankruptcy are high loan burden and dispute over paying the damage after the club was on fire in April.
“Otepää Golf has debts in amount of nearly EEK 45 mln, assets are functioning golf centre, building leases and possible claims,” he said.
Hermet said that previously there was a plan to restructure company, but GMP Projekt Levi OÜ contested the restructuring plan and investors weren’t willing to invest money. ERGO insurance refused to pay compensation in amount of EEK 10.5 mln for the fire.
“Monthly payment for insurance was unpaid due to the restructuring process and insurance company took it as termination of contract,” Hermet said.
He said that Otepää Golf keeps operating and it already has potential buyers.
Meeting of creditors will take place on August 17 in Tartu.