The construction firm, Lehto Group, has announced that the boards of its operative subsidiaries – Lehto Asunnot Oy, Lehto Tilat Oy, and Lehto Korjausrakentaminen Oy – have made the decision to file for bankruptcy. This move comes after a careful evaluation of their current financial state, according to a statement released by the company.
However, it’s not all bad news for the Lehto Group. Two of its subsidiaries, Lehto Components Oy and Insinööritoimisto Mäkeläinen Oy, will continue their operations unaffected by this decision. These subsidiaries have managed to remain viable and will continue to contribute to the operations of the Lehto Group.
Despite the bankruptcy filings, Lehto Group is actively exploring various options for its parent company and the remaining subsidiaries. These options include a continuation of operations, a potential sale, or a complete reorganization. The company is also assessing the feasibility of a restructuring plan and considering a shift to new business areas to diversify their portfolio.
Lehto Group has been working hard to find structural and proprietary solutions that would allow it to survive in the challenging market conditions faced by the construction industry. Unfortunately, these efforts have not been enough to prevent the need for bankruptcy filings.
In December 2023, Lehto Group had announced the failure of a transaction that was supposed to result in the sale of its operational subsidiaries. The company had cautioned that without additional funding or new projects generating income, it would struggle to meet its payment obligations beyond the first quarter of 2024. The current bankruptcy filings suggest that the subsidiaries did not secure sufficient funding to continue their operations.
The three subsidiaries filing for bankruptcy – Lehto Asunnot Oy, Lehto Tilat Oy and Lehto Korjausrakentanimen Oy – are crucial to the Lehto Group’s operations. They represent much of the group’s apartment and office building businesses and contribute significantly to the group’s turnover.
In response to these developments, Lehto Group has requested a suspension of trading for its shares on the Nasdaq Helsinki.
