References/27 Oct 2021
Borenius acted as the bankruptcy estate administrator in the bankruptcy proceedings of Norwegian OSM FI Oy and OSM Aviation Finland Oy
We acted as the bankruptcy estate administrator of OSM Aviation Finland Oy and Norwegian OSM FI Oy, which were declared bankrupt on 30 June 2020 by the decision of the District Court of Itä-Uusimaa. Robert Peldán, our Partner and head of Restructuring and Insolvency team, was appointed as the bankruptcy estate administrator for both bankruptcy estates. The bankruptcy proceedings in terms of these two companies were concluded on 25 October 2021, so the total duration of proceedings was less than 16 months, which is a fairly short period of time in this context.
These bankruptcy proceedings involved several complex issues, such as termination of employment and settlement of claims of more than 360 employees. In addition, our team assisted in collecting and settling a considerable number of debts arising out of disputed intra-group receivables. During the proceedings, the bankruptcy administration managed to collect a considerable number of receivables from foreign companies, which resulted in a substantially high disbursement percentage for the benefit of debtor companies’ creditors. As a part of the debt collection process, debt was converted into shares in Norwegian Air Shuttle ASA, after which these converted shares were sold and the assets distributed to the creditors.
Prior to the bankruptcy, OSM Aviation Finland Oy’s revenue amounted to EUR 23.6 million and Norwegian OSM FI Oy’s to EUR 12.1 million. The companies’ business was mainly based on providing staffing services for all Norwegian flights. The debtor companies’ ultimate parent company is Norwegian Air Shuttle ASA, a Norwegian low-cost airline that is listed on the Oslo stock exchange. Norwegian Air Shuttle ASA has also been subject to voluntary and in-court restructuring proceedings both in Norway and Ireland.