Finnish court rejects tax authority’s bid to replace Teboil’s restructuring administrator

A Finnish appeals court has upheld a lower court ruling allowing fuel retailer Teboil to retain its chosen administrator for corporate restructuring, dismissing a challenge from the Finnish Tax Administration.

The Helsinki Court of Appeal rejected the tax authority’s demand to replace the administrator appointed in Teboil’s restructuring proceedings, Yle reports. The tax administration had argued its own candidate was better suited for the role but failed to provide sufficient grounds for the change.

Teboil, a subsidiary of Russian oil giant Lukoil, filed for restructuring in late November after sanctions disrupted its payment operations, leaving it unable to meet financial obligations. Finnish banks halted transactions with the company due to restrictions on its parent firm.

The dispute centered on the administrator’s qualifications, with the tax authority—owed over €70 million by Teboil—contending its nominee better represented creditors’ interests. The court, however, found no significant difference in expertise between the two candidates and noted that replacing the administrator could delay proceedings.

The tax administration had previously appealed a district court decision favoring Teboil’s administrator, citing longer experience, Russian language skills, and the company’s trust in the candidate. The appeals court affirmed that assessment, stating the tax authority’s preference alone was insufficient to overturn the lower court’s ruling.

A further appeal to the Supreme Court remains possible.