ASA KINDLUSTUS AS

ANNOUNCEMENT

14.06.1999

 

ABOUT THE INVESTMENTS OF ASA KINDLUSTUS

 

As a commentary to the 08.06.1999 article of newspaper "Äripäev", we 

hereby announce that AS Maakri Ehitus set the mortgage of 44 million 

EEK its priority for the benefit of ASA Kindlustus AS and AB 

Elukindlustuse AS. The mortgage was used as a collateral by ASA 

Kindlustus AS for purchase of 8.8 million EEK worth of bonds of AS 

Maakri Ehitus and for 1.5 million USD loan to other companies (balance 

sheet value of assets is equal to their acquisition cost). Investments 

are reflected on the balance sheet on the investments account (bonds 

and other fixed income securities and mortgage loans). 

In addition to the aforementioned, ASA Kindlustus AS also pawned the 

loans taken by AS Maakri Ehitus from Eesti Ühispank in the amount of 

1.25 million DEM. 

 

Tallinn City Court declared on 07.06.1999 the bankruptcy of AS Maakri 

Ehitus. AS Maakri Ehitus is planning to appeal this resolution of the 

Tallinn City Court. 

 

Eesti Ühispank and AS AB Kindlustuse Grupp currently hold negotiations 

to determine the perspectives of further development of the project. 

 

The negotiations between AS AB Kindlustuse Grupp, EBRD and other banks 

and Ramada Hotels International BV to refinance the construction of 

Maakri street building as a future member hotel of Ramada hotel chain 

are still in process. One of the preconditions in these negotiations is 

buyout of AS Maakri Ehitus bonds currently held by the insurance 

company.

 

 

Sergei Netšajev

Chairman of the Management Board