Estonian Company Claims $130mill from SEB

The Estonian company Grove Invest has filed a claim against the Swedish bank SEB in the amount of 1.49 billion Estonian kroons plus overdue penalties for causing the bankruptcy of plywood maker Baltic Panel Group.

“As a result of the forced interference in the management of Baltic Panel Group, Grove Invest lost its investment and the whole company.”

Erki Kergendberg

Grove Invest, who belongs to the Estonian businessman Pjotr Sedin, has filed a claim against SEB subsidiaries SEB Pank and SEB Leasing in the amount of 1.49 billion kroons plus overdue penalties for causing the bankruptcy of plywood maker Baltic Panel Group, the Estonian newspaper Äripäev reports.

Grove Invest founded Baltic Panel Group (BPG) in 2005. In 2008 it went bankrupt with about 150 employees.

Mr.Sedin’s company issued a statement today announcing that it had brought a massive claim against SEB and its leasing units for causing BPG severe economic problems, liquidity and bankruptcy in 2007 and 2008.

Pjotr Sedin

“As a result of the forced interference in the management of Baltic Panel Group, Grove Invest lost its investment and the whole company,” lawyer Erki Kergendberg,  representing Grove Invest, says.

Mr. Kerendberg says that the plant’s commissioning was delayed because of failure of equipment manufacturers to put the machinery in working order,  and that the bank and the leasing company rejected the proposals made by BPG for solving the problems.

Jüri Triletski, board member and shareholder of Grove Invest, says that the plywood plant located in Kohila that cost about 500 million kroons had workers, raw materials, customers and profit insurance contract with Zurich.

“We took the bank as a partner, financing the company by the scheme proposed by SEB. If the bank had not started to create problems for overcoming our launch delays, we would be working today at full capacity producing 50,000 cubic metres of plywood a year worth over 500 million kroons a year, EBITDA at about 230 million kroons and jobs for 150 local residents.”

Grove Invest’s largest shareholders are Petr Levin, Pjotr Sedin, Jüri Triletski, Larissa Sedina, Jaanus Reisner and the Russian company Kylemore International Invest Corporation.

Source: balticbusinessnews.com

Related by the Econotwist:

How Sweden sent Estonian economy into free fall

“SEB Robbed Customers,” Whistleblower Says

Swedbank In Estonia: “Daylight Robbery”

Swedbank Reports Record Loss of SEK 10,5bn

Baltic losses of Swedish banks at 3.7 billion dollar

Nordic Central Banks Agree On Baltic Bank Bailout

How To Make A Rat Look Like A Puppy

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