Odsherred Municipality faces uncertainty over bankruptcy risk for Odsherred Forsyning

Odsherred Forsyning may face bankruptcy if necessary, according to Odsherred Municipality’s Mayor, Karina Vincentz, from the local party Nyt Odsherred. This announcement follows a recent town hall meeting where she addressed community concerns regarding the scandal surrounding the local utility company, which has accrued a total debt of 1.3 billion kroner.

After months of intensive negotiations between Odsherred Municipality and Nordea, the bank filed for reconstruction of Odsherred Varme and Odsherred Forsyning in court last week. It is now up to both parties to determine the next steps following the reconstruction process.

“It is our duty to find the best solution. If bankruptcy proves to be the best option, then that is the direction we will take,” Vincentz stated. She assured citizens that they are protected by existing supply obligations, ensuring they will continue to have access to hot water and heating even if the company goes bankrupt.

In March, the company’s CFO was reported to the police for breaching internal regulations. Subsequently, on April 9, the utility halted the rollout of district heating indefinitely as financial issues escalated.

In the coming weeks, a legal investigation will be initiated to determine the specifics of the situation and identify who is responsible. The investigation is expected to conclude in about six months.