STOCKHOLM (Reuters) -Oscar Properties said on Monday its CEO and chief financial officer had informed the company they were resigning from their posts.
Oscar Properties, one of several highly indebted Swedish real estate groups buckling under soaring borrowing costs and slower demand, said in a statement Carl Janglin would stay on as CEO until a successor had been appointed.
Janglin and CFO Magnus Thimgren both took on their jobs last year.
"We thank them for their efforts during this difficult period. The work on liquidating the company's remaining debt obligations and securing the company's assets now continues," the company said.
The problems at the relatively small player have been exacerbated in recent quarters by some creditors demanding immediate repayment of loans, and two applications for it to be declared bankrupt, one of which was later withdrawn.
Carlsquare analyst Bertil Nilsson called the news of the resignations "ominous". "The fact that the CEO and CFO are leaving shows that Oscar Properties' business is rapidly shrinking after the forced property sales," he said.
Oscar Properties last month had to sell real estate at a discounted price of 2.2 billion crowns ($211 million) to repay loans from Norwegian bank DNB and other smaller creditors.
The unfolding property market crisis in the Nordic country is threatening to engulf the economy.
($1 = 10.4044 Swedish crowns)