Sweden

The risks still circling Sweden’s commercial real estate industry were laid bare late on Thursday when the debt crisis deepened for one of the country’s most high profile landlords, Bloomberg News reported. The Swedish Tax Agency filed a petition with a court for Oscar Properties Holding AB to be declared bankrupt, adding to a growing list of claimants that have sought insolvency proceedings against the former developer of luxury apartments.

Sweden's Oscar Properties said on Monday that Brf Innovationen, a housing cooperative, had filed an application for the real estate firm to be declared bankrupt, citing a breach of a settlement agreement, Reuters reported. Oscar Properties said in a statement that it disputes the bankruptcy application and may seek formal restructuring in its court response. It had previously evaded bankruptcy in a similar situation, when Brf Innovationen retracted its earlier application in January after the companies reached a settlement.

Swedish debt collector Intrum AB has reached an agreement with a majority of its bondholders to address its €5.4 billion ($5.8 billion) debt pile, including a forced loss on credit investors and pushing out the notes’ maturities, Bloomberg News reported. As part of the deal, the company’s existing unsecured notes will be exchanged into four series of new bonds with maturities between 2027 and 2030, but only at 90% of their original value, according to a statement on Thursday. In exchange for the haircut, bondholders will get 10% of Intrum’s equity.

Coloreel Group AB, the Swedish company known for its instant thread dyeing technology, has filed for bankruptcy, PrintWeek.com reported. In an announcement today (10 July), Coloreel said that the decision comes “after the company’s inability to develop its business volume quickly enough and, related to this, secure the necessary financing”. The business said that despite many in-depth discussions with financial investors and potential industrial partners to secure additional funding, it had been unable to overcome its financial hurdles.

Sweden’s central bank held its key policy rate at 3.75% and said it could cut the policy rate two or three times during the second half as long as the outlook for inflation holds, the Wall Street Journal reported. The Riksbank last month became the second central bank from a rich, advanced economy to begin its easing cycle following the post-pandemic surge in inflation, when it lowered its key interest rate for the first time in more than eight years to 3.75% from 4.0%. Switzerland’s central bank was the first to move in March.

Struggling Swedish landlord SBB is preparing to lay the groundwork for an initial public offering of its entire residential portfolio by shifting bond debt from the parent level down into Sveafastigheter AB, Bloomberg News reported. Samhallsbyggnadsbolaget i Norden AB — as the company is formally known — is inviting existing bondholders to exchange their notes for a new issue sold by the residential unit totaling no more than 2.5 billion Swedish kronor ($240 million), according to a statement on Thursday.

Swedish manufacturing activity rose to its highest level in two years as the largest Nordic country is emerging from an economic slump, Bloomberg News reported. A purchasing managers index for the industrial sector rose to 54 in May, from 51.9 in April, which is the highest level since May 2022. The uptick was mainly driven by an increase in new orders, according to Swedbank/Silf, which conducts the survey. “The May outcome strengthens the picture of a brighter manufacturing outlook,” Swedbank analyst Jorgen Kennemar said in a statement.