Two housing companies declared bankrupt in Virrat

Two housing companies in the town of Virrat, Finland, were declared bankrupt on Tuesday, leaving residents without heating or electricity in common areas and facing imminent eviction.

The decision was confirmed by court-appointed administrators, who cited unpaid maintenance fees exceeding €120,000 for one company and €45,000 for the other as the primary cause of insolvency.

Asunto Oy Killinkivi, which owns 18 apartments, and Asunto Oy Ollinkivi, with 10 apartments, both failed to cover essential costs such as utilities and maintenance. Administrators for Killinkivi stated that the building is no longer habitable due to the lack of heating and electricity in shared spaces, warning residents to vacate the premises as soon as possible.

“The building is not fit for habitation,” said Vilho Ilveskoski, the administrator handling Killinkivi’s bankruptcy estate. “Residents should leave immediately.” He added that water supply could fail at any time.

The unpaid fees accumulated over years, primarily owed by a small number of investors and shareholders who own multiple units. In Killinkivi’s case, two major investors accounted for most of the debt, while in Ollinkivi, three shareholders held nearly all the outstanding payments.

Administrators for both companies expressed skepticism about recovering the debts, noting that previous attempts at enforcement had failed. They anticipate the bankruptcies will conclude due to insufficient assets, leaving the properties abandoned.

Bankruptcies among housing companies remain rare but have increased in recent years, with 62 such cases recorded in 2025.