Nordea seeks management takeover of Odsherred Forsyning during court meeting in Holbæk

During a meeting at the Skifteretten (Bankruptcy Court) in Holbæk, the reconstruction plan for Odsherred Varme and Odsherred Forsyning was put to a vote, with approval anticipated. However, shortly before the session concluded, Nordea’s attorney, Christian Jul Madsen, made a surprising announcement, stating that they wished to take over the management of Odsherred Forsyning in accordance with bankruptcy law. This revelation caught Odsherred Forsyning’s director, Pernille Ingildsen, and chairperson, Susan Münster, off guard, as they claimed they had not been informed about this development.

Madsen assured that this change would not adversely affect customers in Odsherred, explaining that it was a procedural step intended to facilitate a smoother final resolution. While day-to-day operations will remain under the current management, Nordea will assume three board positions, including the chairmanship, while employee representatives are expected to remain in their roles.

Per Nikolai Bukh, a professor of management accounting at Aalborg University, commented on the unusual nature of this situation, observing that it is rare for significant creditors to lose faith in existing management. He noted that the case involving Odsherred Forsyning and Odsherred Varme is particularly exceptional, marking a significant moment in Danish history, given that utility companies typically do not face insolvency.

Madsen clarified that the takeover of management is not due to a lack of confidence but rather aims to streamline communications and signals. Should an insolvent company show signs of recovery, the court may initiate reorganization proceedings, which can involve selling parts of the company or reducing debt. The reconstruction process will require the court’s oversight and a plan that creditor stakeholders must vote on within a year. Meanwhile, Ingildsen will continue managing day-to-day operations, while Münster has been dismissed. Neither provided comments after the court meeting, as they were to inform the rest of the board first.