27
Mon, Jun
49 New Articles

TGS Baltic Successful for Toomas Tamm In Dispute Over Guarantee Issued by AP-Terminaal

TGS Baltic Successful for Toomas Tamm In Dispute Over Guarantee Issued by AP-Terminaal

Estonia
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

TGS Baltic has successfully represented entrepreneur Toomas Tamm, the former owner of Kivioli Keemiatoostus in a dispute involving a guarantee issued by OU AP-Terminaal.

Kivioli Keemiatoostus, which is a member of the Alexela Group, is active in the oil shale extraction and the production of shale oil, thermal energy, and power sectors. According to TGS Baltic, “the main legal issue concerned a debt relationship between different parties: a letter of guarantee was issued to ensure the satisfaction of the client’s claim arising from a loan agreement concluded between the client and the principal debtor. Before court proceedings started, bankruptcy of the principal debtor was declared and complicated court proceedings for the declaration of the surety’s bankruptcy were in progress; therefore, the only possibility to satisfy the claim was to demand performance from OU AP-Terminaal as the guarantor on the basis of the letter of guarantee.”

According to the firm, “the parties argued, inter alia, over the validity of the letter of guarantee regarding the client as the creditor. Active work in court proceedings on proving the legal position and conducting negotiations made it possible to conclude a compromise on extremely favourable terms for Mr. Tamm: OU AP-Terminaal undertook to pay EUR 170,000, which constitutes almost 92% of the claim first submitted to the court.”

TGS Baltic’s team included Senior Partner Paul Varul and Associate Maris Vutt.

Our Latest Issue