Valoe faces potential bankruptcy as attorney Pekka Jaatinen seeks restructuring suspension in Helsinki

Valoe, a solar energy company listed on the Helsinki Stock Exchange, is facing significant challenges in its restructuring efforts. On Wednesday evening, the company announced that the appointed restructuring administrator, attorney Pekka Jaatinen, intends to seek a suspension of the restructuring process. This suspension could likely lead to the company’s bankruptcy.

The proposed restructuring plan aims to reduce nearly €24 million of debt by 90%. Jaatinen stated that the restructuring process cannot be prolonged indefinitely, and he has an obligation to request a suspension if a viable solution is not found. Over the past eight months, Valoe has reportedly failed to secure financing essential for its future viability.

Jaatinen noted that his application for the suspension marks the first in his career. However, he has left the door open for retracting the application if the company manages to stabilize its finances. In a press release, Valoe confirmed it continues ongoing financing negotiations.

Bankruptcies in the Helsinki Stock Exchange are rare, and if Valoe’s situation progresses to bankruptcy, it would mark the first for a main list company since 2018, following the insolvency of the former mining company Ahtium Oyj. With a market capitalization of €2.75 million, Valoe holds the title of the smallest company on the main list. Trading of Valoe’s shares has been suspended since December of the previous year. Additionally, Rush Factory, the smallest company on the First North trading platform, is also at risk of bankruptcy.