(Bloomberg) -- Swedish landlord Oscar Properties should enter bankruptcy proceedings after failing to uphold a settlement agreement with a creditor, according to a statement.

The creditor in question is Brf Innovationen, a housing cooperative that owns one of the two flagship residential towers in Stockholm built by Oscar Properties.

Oscar Properties plans to refute the claim. “The board is continuously evaluating the options to ensure the continued operations of the company, and is in discussions with Brf Innovationen and other creditors,” it said.

The Swedish landlord is facing further challenges from other creditors. DNB Bank ASA last month began selling a portfolio of properties belonging to the Stockholm-based landlord after it was unable to keep up with interest payments on a 1.6 billion kronor ($153 million) loan. The deadline for bids on that portfolio is Jan. 8.

Shares in the struggling landlord fell as much as 15% when trading started in the Swedish capital on Friday, giving the company a market value of just 53 million kronor. That figure stands in sharp contrast to the debt it owes credit institutions, which totaled 2.8 billion kronor in the third-quarter report.

Read More: Lender DNB Starts Selling Swedish Landlord Assets After Seizure

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