TALLINN — Brem, a large Estonian real estate maintenance company has been filed for bankruptcy after its million krooni-plus debt put hundreds of buildings across the country under threat of losing power.
Tallinn heating company Tallinna Küte filed for Brem’s bankruptcy in the Harju County Court, as the maintenance company has not been able to pay off its bills. The first debate over the possible bankruptcy will be held Aug. 18. The domestically-owned Brem administrates over 1,000 properties in Estonia.
Brem’s total debts reach up to 1.54 million krooni (€98,423), and they also owe money to Eesti Energia, the country’s national energy company, for electricity.. Eesti Energia lost patience with Brem, who has not paid its electric bills since February and on Sunday decided to turn off the power in several Brem buildings, including offices, a shopping center, and several industrial buildings were under threat. Brem’s own office building was also one on the list.
Margus Rink, a board member of Eesti Energia said in the press release that they tried to reach an agreement with Brem within last six months to resolve the debt, but their requests were ignored.
“Brem paid some of the debt in the beginning of last week, and promised to pay another part by the end of the week, but again it stayed only a promise,” Rink said. “To avoid the increase of the debt we have no other solution than to start turning off the electricity.”
Brem finally decided to transfer some of the debt to Eesti Energia Monday night. How many buildings were actually cut off from power is unknown as Eesti Energia refused to divulge the number to the media. The energy company reported Monday afternoon that they reached an agreement with Brem.
“Brem paid half of its electricity debt and made a payment schedule to pay the rest of the debt,” the energy company said on its website.
Eesti Energia annulled the power switch-off of the buildings that were scheduled for this week and restored the power in those properties were the power was turned off Sunday.
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