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US hedge fund Fir Tree Partners, a bondholder in the Swedish property group SBB, criticised the company's debt buyback offer. Fir Tree argued that the offer, which seeks to repurchase hybrid and senior securities for up to $650 million to reduce the company's debt, disproportionately favoured shareholders and neglected obligations to creditors. SBB, currently facing financial challenges amid a broader Swedish property downturn, announced the buyback proposal. In response, credit rating agency S&P placed SBB on credit watch for a potential downgrade to a selective default, expressing concerns that purchasing debt at a substantial discount might be viewed as equivalent to default. Fir Tree, holding bonds maturing in 2028 and 2029, voiced its reservations in an open letter to fellow bondholders. The hedge fund questioned SBB's decision to buy back hybrid notes with no maturity, asserting that this was not obligatory. Fir Tree emphasised that SBB seemed to be prioritising the preservation of equity value over meeting immediate and long-term senior obligations. The hedge fund urged other bondholders to carefully consider its concerns before potentially participating in the tender offer, which has a deadline of November 22. SBB did not provide an immediate comment when approached by Reuters. Fir Tree had previously requested immediate repayment of a bond earlier in the month, claiming that SBB breached a debt clause?a contention the company denied. Danske Bank credit analyst Marcus Gustavsson acknowledged the importance of Fir Tree's questions, especially regarding the rationale behind SBB's offer to repurchase hybrid bonds. He noted that the tender offer came as a surprise to Danske Bank.