The Swedish Tax Agency has formally requested the company's bankruptcy and demanded a stop to the company's operations since the debt mountain continues to grow.
When the bankruptcy negotiations began in the Stockholm District Court shortly after lunch on Thursday, the total debt amount was 19.7 million kronor, of which 4.6 million kronor was owed to the state, according to Expressen, citing documents from the Swedish Enforcement Authority.
The company's stock was halted on the Stockholm Stock Exchange just before 2:30 pm. The stock has fallen by almost 99 percent of its value over the past three years.
The Swedish Tax Agency submitted a bankruptcy application to the court as early as August 1, citing a tax debt of two million kronor, according to several media outlets.
The crisis-ridden real estate company – which is behind, among other things, the Norra Tornen buildings in Vasastan, Stockholm – has, however, managed to have the decision postponed several times at the last minute.
Thursday's hearing was a continuation of a hearing that was paused on August 22, after the company promised to try to pay off the tax debt to the state.
Corrected version: An earlier version of the text incorrectly stated the time period for the stock price decline.
