The heavily indebted operator of the Nord Stream 2 pipeline has surprisingly been granted another delay in reaching an agreement with creditors to avoid bankruptcy.
The court in the Swiss canton of Zug had originally announced a ruling on January 10. The new deadline now applies until May 9, the court announced.
By then, all small creditors must be paid “in full” and proof of payment must be submitted. “If this deadline is not met, Nord Stream 2 AG will be declared bankrupt without setting a grace period,” the subdistrict court announced. In Germany this corresponds to insolvency proceedings.
Pipeline never operational
Nord Stream 2 AG belongs to the Russian Gazprom group. It should supply Russian gas to Germany via the Baltic Sea. The pipeline, which cost almost 10 billion euros and is 1,200 kilometers long with two strands, was completed but never put into use. The controversial gas deal was suspended following the Russian attack on Ukraine in February 2022. An attack in early September 2022 destroyed one of the two pipelines, as well as the two lines of the Nord Stream 1 pipeline, which has already been put into service.
The company Transliq, as administrator, submitted a debt restructuring agreement to creditors in November. However, the necessary agreement with the creditors has not yet been reached. In the event of an inheritance agreement and bankruptcy, creditors must relinquish part of their claims. However, compared to bankruptcy, an agreement is legally more advantageous for companies and creditors.
Source: Krone
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