Landlord SBB Faces Demand for Bond Repayment on Breach Claim
- Creditor sends letter saying interest coverage is in breach
- Company firmly rejects claim, says notice is ineffective
A SBB logo on a property managed by the company in Stockholm, Sweden.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Embattled Swedish landlord SBB is facing an inflection point after one of its creditors demanded its money back, the first time such a written notice has been given.
Stockholm-based Samhallsbyggnadsbolaget i Norden AB — as the firm is officially known — has been at the center of Sweden’s property crisis as landlords scramble to find ways to refinance billions of dollars of bonds amassed in the cheap-money era. Now one of those bondholders has run out of patience, saying repayment is needed on the grounds SBB breached a key term in its debt.