Estonia, Financial Services, Loan, Tourism, Transport

According to initial agreement, Infortar was scheduled to repay a billion kroons in loans by August 2010, but it was given a chance to extend the due date. Otherwise, the company might be forced to sell shares of Tallink, or say good-bye to its real estate.

"In economic crisis we launched Tallink Takso, and started building a hotel in Riga. You can see from our balance sheet that we have been borrowing more," explained Ain Hanschmidt.

"I am not complaining since we have been able to finance everything and banks agree to refinance us," he added.

Tallink said in December that banks allowed restructuring of its loan repayments.

As reported, Infortar deals with real estate development. It developed a new head office for Tallink in Tallinn Passenger Port and leases it to Tallink. Hotels, operated by Tallink, pay lease to companies belonging to Infortar Group. Infortar subsidiary in Riga currently is developing a hotel for Tallink.

Infortar liabilities as of August 31 (or at the end of the company's financial year) totaled almost two billion kroons.

Infortar owns 40% of Tallink Group that has been pledged for bank loans and is worth about two billion kroons.