Tallinn's most famous nightclub could go bankrupt

Tallinn’s No. 1 gayclub Angel has found itself deep in financial trouble and is losing money.

Eesti Päevaleht writes that the club that belongs to brothers Peeter and Priit Rebane ended last year with a loss of more than EEK 660,000. The club’s total loss is about EEK 2.5 mln.

The club’s auditor pointed out that the net assets of Heavenly Service Ltd that owns and operates the club are negative by EEK 570,000. Under the commercial law, companies whose net assets make up less than half of their equity must be liquidated or file for bankruptcy.

The company owes about EEK 265,000 in taxes with interest.

Priit Rebane, one of the shareholders of the club, said that he is not actively involved in running the club. “This is a question to the club’s managers,” he said.

Siim Kumari who took over as CEO of Heavenly Service last September said that the problems occurred long before. “Our situation has been improving and we are making a profit this year,” he said.

However, his optimism may be ill-founded since the company is claimed EEK 630,000 by Meifort Baltic Invest Group that was the general contractor in the construction project. The latter has already filed a debt claim in the court.

Source http://balticbusinessnews.com/default2.aspx

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