The Nord Stream 2 AG has announced that a payment moratorium could help smaller creditors, but large investors may require the sale of the pipeline or the restructuring of the company to meet their demands. This is according to a court decision in the Swiss canton of Zug, reported by the TASS news agency.
The main shareholder of the project and large financial investors have spoken out in favor of a further payment moratorium. An immediate insolvency procedure would lead to a significant loss of value for the pipeline system and have severe consequences for smaller creditors. The Nord Stream 2 AG explained in its justification that insolvency would bring many small creditors to the brink of existence and deprive large creditors of substantial sums.
However, a payment moratorium beyond the legal deadline could ensure the full satisfaction of smaller creditors’ claims, potentially even through the sale of the pipeline or the restructuring of the company, according to the company.
As a result, the insolvency moratorium for the Nord Stream 2 AG has been extended until May 9, 2025. The company must pay all smaller creditors within 60 days of receiving the court’s decision, or it will be declared insolvent. The main shareholder, as the largest owner and creditor of Nord Stream 2, has stated that it is prepared to provide funds directly or through a subsidiary in the event of an extension of the moratorium period.
The Nord Stream 2 AG also highlighted that the question of extending the insolvency moratorium is not only a matter of economic, but also of political complexity, particularly in the context of geopolitical circumstances and sanctions. This is evident in the fact that the main creditors are dependent on the decisions of national sanctions authorities in the context of formal approval of a debt restructuring agreement.
Investors in the Nord Stream 2 AG include European companies OMV, Wintershall Dea, Shell, Uniper and Engie, which have committed to a long-term financing of 50% of the project’s estimated total cost of 9.5 billion euros, with each company able to contribute up to 950 million euros.
The construction of the Nord Stream 2 was completed on September 10, 2021, originally planned for completion by the end of 2019, but delayed due to US sanctions. The pipeline consists of two strings with a total capacity of 55 billion cubic meters of gas per year, running from the Russian coast through the Baltic Sea to Germany.
On September 26, 2022, significant damage was found on three strings of the Nord Stream and Nord Stream 2 pipelines, leaving only one string of the Nord Stream 2 intact. The Russian General Prosecutor’s Office launched a procedure on international terrorism in connection with the damage to the pipelines. The timeframe for the restoration of the pipeline’s operational capacity is currently unknown.
In November 2024, it was reported that US investor Stephen Lynch expressed interest in buying Nord Stream 2. Kremlin spokesperson Dmitry Peskov stated that he had not heard of Gazprom’s desire to sell Nord Stream 2 to US investors. Experts consulted by TASS valued the reports of a US investor’s engagement as personal PR, but if the company’s assets and liabilities were to be put up for sale, it would be possible for a US investor to become the future owner of the pipeline.