Sale of Zsar shopping center near Vaalimaa border crossing at risk of cancellation due to delayed payment

The sale of the Zsar shopping center near the Vaalimaa border crossing is at risk of being canceled if payment is not received soon, according to Matti Manner, the administrator of the bankruptcy estate. The shopping center declared bankruptcy in 2022, and an agreement was reached with a private Finnish buyer in August, but payment has been delayed for several weeks.

“The situation is far from satisfactory as the agreed-upon terms and timelines are not being honored,” Manner stated. The bankruptcy administrator and creditors are already considering withdrawing from the deal. “We cannot wait indefinitely for the payment. We might have to cancel the sale soon if the funds are not forthcoming,” Manner added.

The Zsar shopping center opened in 2018 and primarily attracted Russian shoppers. The buyer’s name and the sale price have not been disclosed publicly. Manner noted that the bankruptcy estate could annul the contract immediately due to the payment delay. However, he mentioned that he had spoken with the buyer’s representative this week, who assured him that everything was still on track.

One possible reason for the payment delay could be the late initiation of the buyer’s company formation, intended to manage Zsar. Manner did not specify how long they would continue to wait, but he indicated that the time to cancel the sale is approaching.

The largest creditor of the bankruptcy estate is Oma Savings Bank in Lappeenranta, with a collateral value set at €22.1 million. The bank has paid over €10,000 monthly for property maintenance to keep the buildings in a saleable condition. Despite a disappointing auction bid of only €70,000 in 2023, new interested buyers have emerged.