ODSHERRED: The bankruptcy court in Holbæk on Tuesday upheld the reconstruction plan for Odsherred Varme, which saves the heating plant from bankruptcy. This is reported by several media outlets, including TV2 Øst and Cleantech Watch.
A majority of the creditors voted in favor of the reconstructionists' proposal, which means that the heating plant will be debt-free in 45 years, but that consumers will have to pay a high heating price until then, and that the creditors will miss out on a large part of their receivables.
The dividend to financial creditors will be 59 percent, to non-financial creditors 26 percent.
The company has ended up in reconstruction due to a debt of almost 1.5 billion DKK, after a district heating project foundered. With the reconstruction, the debt will now be halved.
- It is a great relief and joy that we have found a solution to this complex matter. A case that has had great significance – not only locally, but for the entire industry, says chairman Lars Therkildsen to TV2 Øst.
The parent company Odsherred Forsyning has also been sent into reconstruction due to the heating scandal in the subsidiary, and the bankruptcy court approved that the case will be heard in the bankruptcy court in August.
Lawyer investigation ready
At a city council meeting on Monday evening, it was approved that the municipality would ask Kommunekredit to propose a lower dividend, so that the financial creditors - primarily Nordea and Odsherred Municipality via Kommunekredit - only received 52 percent. of their receivables instead of the proposed 59 percent.
The purpose was to give the company a better opportunity to survive the 45-year repayment period and at the same time ensure a heating price that customers can pay and do not flee from. If the dividend was not reduced, the municipality would ask Kommunekredit to abstain from voting.
According to Sjællandske Nyheder, however, that proposal did not come up at all, as there was a majority in favor of the restructuring party's proposal.
Lawyer investigation ready
At the city council meeting, it was also approved that Bech-Bruun's lawyer investigation, which was presented to the city council on Monday, will be published as soon as it has been cleared of personally identifiable and confidential information. This will probably be during this week.
The investigation will not be discussed politically until after the summer holidays, so that there will be proper time to read it.
It also appears that the Danish National Appeals Board, following inquiries from the Fair District Heating association, has asked Odsherred Municipality for a statement with a view to deciding whether to file a supervisory case. For this purpose, the lawyer's investigation will be sent to the Danish Social Insurance Institution.
Boards of directors must be better equipped
According to the trade organization Tekniq, the entire case should lead to reflection on how boards of directors are equipped in publicly owned companies.
According to Tekniq, the case means that the affected companies must wave goodbye to three-quarters of the money they would otherwise have been entitled to.
This makes it clear how bad things can go when the finances of utility companies are not managed properly, says Tekniq, whose member companies have up to double-digit million amounts in a pinch.
- This case should give rise to a thorough look at how boards of directors are composed and equipped in publicly owned companies in the future, says Nicolai Siegumfeldt, deputy director of Tekniq.
The organization calls for the case to be used to create a better framework for responsible management and board work in utility companies.
- There is a risk that cases like this will affect the trust and security that must exist when companies enter into contracts with public companies. We as a society cannot afford to ignore that, says Nicolai Siegumfeldt.
In Odsherred, it has already been decided that in future, politicians, but professionals, will not sit on the boards of major public companies in the municipality.
The article is continuously updated.
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