Bankruptcy estates seek 17 million kroner from Nordic Waste-linked companies

The bankruptcy estates of Nordic Waste and DSH Recycling are seeking 17 million kroner from companies linked to businessman Torben Østergaard Nielsen, DR reports.

The legal dispute began Monday over whether the money was paid at a time when the companies were so close to bankruptcy that it must be returned to the estates.

Nordic Waste, a soil-cleaning company, filed for bankruptcy in January 2024, shortly after millions of cubic metres of soil began moving in Ølst near Randers.

The estates are seeking the money from the former owners of DSH Environment ApS and two other companies owned by Østergaard Nielsen’s USTC group.

The case will be heard over 11 court sessions at Randers Court.

Jacob Skude Rasmussen, a lawyer from Gorrissen Federspiel representing the three companies, said the money had been paid as advance tax and transferred through the group.

“Our position is that nothing should be repaid. There should be an acquittal,” he said.

The bankruptcy estates bringing the case declined to be interviewed by DR.

Interest from local authorities and the state

Frederik Waage, a professor of administrative law at the University of Southern Denmark, said the outcome would be closely watched by parties that have lodged claims against the Nordic Waste estates.

Since December 2023, when millions of cubic metres of soil slid, there has been intense debate over who should pay for the cleanup, which is estimated to cost about half a billion kroner.

“There is no doubt that Randers Municipality, the government, which is bringing a compensation case against Nordic Waste’s management, and those with money at stake are extremely interested in whether more money will come into the bankruptcy estate,” Waage said.

He therefore expects Randers Municipality and the state, both of which have filed claims to cover their cleanup costs, to follow the outcome of the case.

That issue will be decided in a separate court case at a later date.