TGS Baltic Successfully Represented Toomas Tamm, the Former Owner of Kiviõli Keemiatööstus, In a Dispute That Concerned a Claim Arising From a Guarantee Issued by AP-Terminaal

09.02.2021 TGS Baltic Successfully Represented Toomas Tamm, the Former Owner of Kiviõli Keemiatööstus, In a Dispute That Concerned a Claim Arising From a Guarantee Issued by AP-Terminaal

We successfully represented entrepreneur Toomas Tamm, the former owner of Kiviõli Keemiatööstus, which deals with oil shale extraction and production of shale oil, thermal energy, and power, in a dispute that concerned a claim arising from a guarantee issued by defendant OÜ AP-Terminaal.

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 OÜ AP-Terminaal as the guarantor on the basis of the letter of guarantee. 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 the client: OÜ AP-Terminaal undertook to pay EUR 170,000, which constitutes almost 92% of the claim first submitted to the court.

Toomas Tamm was represented by senior partner Paul Varul and associate Maris Vutt.