Bloomberg: Nord Stream 2 Operator Says Selling Pipe Is Possible to Pay Debt … but only if Russian Gas flows!

Bloomberg reports that Nordstream 2 considers selling assets to pay for its debt, under the current bankruptcy procedure which is suspended by the Juge to find a solution to recover assets and eventually allow a restructuring of the failed company (“Nachlassstundung”). Usually tight deadlines are given by the Juge to find a solution, that’s why it is surprising that the Juge extended the deadline already by over one year. There is obviously a difficult situation and a political interest in it to require the Juge to extend deadlines.

The Swiss law allows the appointed administrator to act on behalf of the Company: control of the Company’s business activities, calling for creditors, suggesting actions to take etc, and submitting a proposal to the Juge for either a restructuring or a liquidation of the Company. The creditors are able to vote i.e. to oppose/agree, the shareholders (and the Board of directors) help to find a solution, but do not have the creditors’ vote on it.

Leaks showed that a well known US investor, Stephen Lynch, has applied to the Biden Administration, in February 2024, to be allowed to buy Nordstream’s distressed assets (Nordstream is sanctioned). But what is the status today under Trump? Will Nordstream survive or be liquidated? And the pipelines – do they have a value or are they scrap: officially one remaining Nordstream 2 pipeline string may be operational as it was not bombed?

But what helps to buy an almost scrapped pipeline string against Russian interests: Russia owns the gas and has the say with whom to play.

The Trump Administration will have only a few months left to decide if Nordstream 2 can be revived by finding a deal with Russia and to define the US interest in and control on the pipeline, the gas distribution in Europe and other commercial terms of such a JV with Russia. The Swiss Juge may have to decide soon – which looks pretty stressful.