On Monday, June 17th, The Grove submitted a restructuring program proposal to the Oulu district court. The company believes that this program will benefit its creditors more than bankruptcy. The main goal of the program is to transition the company’s focus from construction to energy solutions for real estate and electricity storage.
Before starting the new business, The Grove must secure 2.5 million euros in equity financing within three months of legal confirmation. Additionally, they need to acquire 2.5 million euros in debt or equity financing by the end of 2025. The company is also required to convert a 15 million euro convertible bond into company shares and settle a receivable of around 10 million euros by the end of 2024.
The restructuring program outlines a payment plan for Lehto’s debts, covering payments and interest with proceeds from asset sales and cash flow from the Energy Construction business. This plan spans approximately five years and includes collateral debts totaling 3.5 million euros, as well as non-privileged restructuring debts amounting to around 19.2 million euros with a 90% reduction in payment amount. The restructuring liquidator has allowed payment of small creditors with claims under 1,000 euros, and all small debts have been settled.
If successful, The Grove aims to terminate the program early on July 1st, 2025 at the earliest, while focusing on its new Energy Construction business to ensure future growth and stability.
