A construction company undergoing corporate restructuring Lehto Group published its half-year report on Thursday. The company’s key figures are of little importance at this point, as the construction subsidiaries belonging to the company have filed for bankruptcy and the remaining part of the company is undergoing restructuring.
Lehto has been able to lighten its debt burden due to the bankruptcies of its subsidiaries. By the end of June, its total debts were 28.5 million euros, while in the comparison period the amount of debt was 143.1 million euros.
The group’s personnel has significantly decreased since the beginning of the year. At the end of June, the group had 99 employees, of which 88 were laid off full-time and some were working on a fixed-term or notice period.
According to the program proposal announced in the summer, the company is about to start energy construction business after the restructuring, which would be used to fix the restructuring fees. Starting a new business requires that current debts must be reduced and the company’s capital strengthened with new financing.
It is good for investors to note that even if Lehto survives the restructuring, its cash flows will go into the creditors’ pockets for several more years. The length of the debt payment period included in the restructuring is five years.
The company does not give future prospects, but states that the restructuring program is not approved as a risk. This would mean that the company would no longer be able to do business and would probably lead to bankruptcy.
Source: www.arvopaperi.fi
