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Court Rejects Rescue Plan for Indebted Estonian Builder Evicon Ehitus
An Estonian court has blocked a restructuring plan for the construction firm Evicon Ehitus, pushing the company toward bankruptcy and leaving approximately 150 creditors to face losses totaling nearly €5 million.
- —The court has ruled against the restructuring plan of construction company Evicon Ehitus, which owes millions of euros to hundreds of partners, effectively ending attempts to save the company.
- —Creditors had previously voted against the restructuring plan in November due to concerns about its feasibility in repaying debts.
- —Evicon Ehitus's management had sought court approval for the plan without creditor support, but this was ultimately unsuccessful.
- —The company's debts amount to approximately 4.9 million euros owed to around 150 major creditors, with Decora being the largest creditor with a claim of nearly 950,000 euros.
Recap
The court's rejection of Evicon Ehitus's restructuring plan is the final act in a corporate collapse driven by creditor distrust. This failure is not just an isolated insolvency but a signal of financial fragility within Estonia's construction sector, where ambitious recovery plans are met with deep skepticism. The outcome guarantees significant losses for a wide network of suppliers and partners, with potential ripple effects across the industry.