The fate of Kymi Ring’s summer events, which has filed for bankruptcy, is still open. There are interested buyers for the railway property, the price will be known later.
– I know there are people who have been waiting for this stage. It remains to be seen what the price of bankruptcy realisation will be. There must be a small busload of people who expect to get the property at a good price,” Kivisaari comments.
The events for the coming summer at Iitti Motorway are now open. Some small events were planned for the track. Last summer, the Kymi Ring was due to host a MotoGP race, which was cancelled due to track deficiencies.
The fate of the agreed events is no longer decided by the railway company, but by the bankruptcy estate and its administrator.
What happens to Kymi Ring in bankruptcy?
Kymi Ring oy, which built a motor sports center on the border of Iitin Kausala, Kouvola, announced on Thursday of last week that it will file for bankruptcy on its own initiative. The district court will decide on the bankruptcy this week.
In bankruptcy, the company’s assets and liabilities are listed. The administrator appointed by the district court will then start working to sell the property. The proceeds from the sale will be used to pay the company’s debts.
Kymi Ring’s biggest asset is tied up in railway real estate. Its estimated price becomes public when the district court decides on bankruptcy. The price estimate may be different from what potential buyers are willing to offer.
According to the restructuring program, the railway company has debts of around 22 million euros. The largest creditors are Nordea and Finnvera. These debts have been secured by railway property.
One of the unsecured creditors is Lahti Events, to which the bankruptcy estate owes approximately two million euros.
In the bankruptcy, the debt payment order is determined, which can lead to significant credit losses for the city-owned Lahti Events. In connection with the restructuring program, it became apparent that Kymi Ring has a lot of disputed debts.
The restructuring programme fell through
For a long time, Kymi Ringi’s activities were tried to actually get started. At the beginning of the year, a restructuring program was drawn up for the company, which collapsed for good at the beginning of March, when a foreign investor interested in the project withdrew.
After this, the company tried to sell its railway property, because the obligations of the restructuring program were due in May. When this failed, the company ran out of money.
– We couldn’t find a buyer for Kymiring quickly enough, who would have paid for \\the property and the company\\ as much as the restructuring program would have required. It was pointless to prolong filing for bankruptcy, Kymi Ring CEO Riku Rönnholm says.
*What thoughts does Kymi Ring’s bankruptcy evoke? You can discuss the topic on 12.4. until 11 p.m.*