New grace period for pipeline operator Nord Stream 2
Published: Friday, Dec 20th 2024, 18:30
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The future of the Russian pipeline operator Nord Stream 2, which is burdened by high debts, is still up in the air. On Friday, the Zug Cantonal Court gave the creditors another - probably last - chance to reach an agreement.
The court has set the creditors of the heavily indebted pipeline operator owned by Russian company Gazprom a final deadline to decide on a proposed debt restructuring agreement. They have until January 8, 2025 to submit their approvals.
"If the required quorum is not reached, the composition agreement submitted would not be accepted and would lead to the opening of bankruptcy proceedings," the administrator Transliq announced on request.
Transliq had been appointed to work out restructuring options or an agreement with creditors. Transliq did not provide any details about the composition agreement. Such agreements usually involve the sale of assets in order to partially compensate creditors.
Pipeline never in operation
Nord Stream 2 AG was to supply Russian gas to Germany through the Baltic Sea. The pipeline, which cost almost ten billion euros and was 1200 kilometers long with two strings, was completed but never put into operation. The gas deal was put on hold following Russia's attack on Ukraine in February 2022. One of the two pipe strings was destroyed in an attack at the beginning of September 2022, as were the two strings of the Nord Stream 1 pipeline that had already been put into operation.
The operating company was left with high debts and made almost all of its employees redundant. At the beginning of January 2023, the court in Zug granted a debt-restructuring moratorium, which was extended several times, in order to avert bankruptcy.
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