Court approves restructuring plan for Estonian startup Planet42

Harju County Court has approved the restructuring plan of Estonian car rental startup Planet42, which will allow the company to escape bankruptcy and continue its business activities. 

Creditors who agree to exchange their claims for a block of shares in the reorganized company will become shareholders in the parent company Inclusion. Creditors who do not agree to exchange their claims for a block of shares will receive 5.5% of the principal debt and 7.5% per annum after a one-year grace period.

Founded in 2017 in Tallinn by Eerik Oja and Marten Orgna, with operations in South Africa and Mexico, Planet42 buys used cars from a network of car dealers and connects them with customers. The platform works on a subscription base, without the need to physically inspect or meet the customer. The startup helps people, who are unable to secure financing from traditional institutions to buy a car.

In February 2023, Planet42 raised $10M in debt financing from existing shareholders and other backers in Estonia, as well as $15M from Estonia's Change Ventures, South Africa's Naspers, and US angel investor Andrew Rolfe. In March 2024, the company raised €15M from South African Standard Bank.

In August 2024, Planet42 has suspended payments to its investors. The company's founder Eerik Oja wrote a letter to investors that due to the deterioration of business activity in the Republic of South Africa, Planet42 will temporarily suspend scheduled interest and principal payments on loans in July.