The company that owns the controversial Nord Stream 2 Baltic Sea pipeline has again narrowly escaped insolvency. The company, based in Zug, Switzerland, has experienced further delays in paying off its debts. The next deadline is now January 10, 2023.
According to lawyers, in the event of a suspension of payments, a court first grants a temporary postponement to a company with payment difficulties. At the same time, the court took measures to ensure the preservation of the remaining assets. With the help of the administrator, the prospects for a covenant agreement are being examined. In May of this year, the court granted a provisional suspension of payments for the first time, which was valid until September 10. This period has now been extended by a further four months.
Mass termination at Nord Stream 2
At the beginning of March, the Swiss economic authority had already discussed enormous payment difficulties due to the sanctions against Nord Stream 2 and an imminent “bankruptcy”. The approximately 100 employees in Zug were made redundant at the time.
Nord Stream 2 is owned by the Russian state gas company Gazprom. Half of the $11 billion project was funded by energy and oil giants Shell, OMV, Engie, Uniper and Wintershall DEA. With the 1,230-kilometer pipeline through the Baltic Sea, Russia wanted to double the capacity of its natural gas supplies to Germany. Nord Stream 2 is ready, but the German government had postponed the commissioning due to the Russian invasion of Ukraine.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
