Highlight 3 August 2012

Krogerus acts as administrator in one of the largest bankruptcies in Finland of recent years

Partner Hannu Ylönen was appointed as the administrator in the bankruptcy proceedings of FNsteel Oy Ab, a steel company that produced and processed wire rod and PC strand. The company was formerly called Ovako Wire Oy Ab.

FNsteel Oy Ab employed approximately 450 people at the Dalsbruk and Koverhar factories in Finland at the time of bankruptcy in June 2012. It is a subsidiary of the Netherlands-based FNsteel Holdings B.V.

The parent company includes business units operating in Sweden, Germany and the Netherlands, which remain as operating enterprises independent from FNsteel Oy Ab. Revenue for the entire group companies in the years before the bankruptcy was about EUR 400 million. The going concern had assets of approximately a hundred million euros.

“This is the largest bankruptcy in Finland so far this year and one the most significant in recent years,” commented Ylönen.

“Our aim is to sell the factories in Finland as whole operational units,” said Ylönen. “This saves money for the bankruptcy estate and generates a greater purchase price for the assets that are sold, which benefits creditors. Also, if the factories re-start business, employees could potentially get their jobs back.”

Krogerus lawyers have among the most sophisticated understanding in Finland of how to handle business operations during insolvency situations and how to manage bankruptcy estates. The firm’s experience has been gained through its successful involvement in several of the largest and most high-profile restructuring and insolvency matters of recent times in the country.

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