Banks give Tallink's controlling shareholder a lifeline
09.03.2010, 11:58Infortar that is a large shareholder of listed ferry operator Tallink Group and is controlled by three Estonian businessmen Enn Pant, Ain Hanschmidt and Kalev Järvelill has won more time from banks in repaying its loans, writes Äripäev.
Infortar was originally scheduled to repay a billion kroons in loans by August 2010, but has now been able to extend the repayment date. Otherwise, it would have been forced to sell shares of Tallink and sell real estate.
Tallink announced in December that it has agreed with banks on restructuring its loan repayments. According to analysts, the risk for banks is not too big since Infortar has a strong balance sheet and good cashflow. In addition to controlling Tallink, Infortar owns several hotels that are operated by Tallink, a taxi company in Tallink and currency exchange offices on Tallink ferries. In April it plans to open a hotel in Riga.
"Although it is economic crisis we launched Tallink Takso and have been building a hotel in Riga. You can see from our balance sheet that we have been borrowing more," explained Ain Hanschmidt.
"I am not complaining since we have been able to finance everything and banks agree to refinance us," he added.
As of August 31 when the company's financial year ended Infortar had almost 2 billion kroons in liabilities. This is about 240 millio kroons more than a year earlier. Also short-term liabilities payable by August have increased from 625 million kroons to almost 1.1 billion kroons.
Infortar owns 40% of Tallink Group that has been pledged for bank loans and is worth about 2 billion kroons.
Infortar ended its financial year with a loss of 300 million kroons, of which 250 million kroons was adjustment of real estate. In comparison, in 2008 the company made a profit of 53 million kroons. While in 2008 it recorded Tallink shares in market value, in 2009 it has down so in balance sheet value enabling to show a higher value and smaller loss.