The subsidiaries that run Lehto's operational activities have filed for bankruptcy. They make up the majority of Lehto Group's turnover.
Construction company Lehto Group's subsidiaries managing the construction of apartments and offices are filing for bankruptcy.
Lehto, which is in financial difficulties, says in its press release that its subsidiaries Lehto Asunnot, Lehto Tilat and Lehto Korjausrakentanmen have filed for bankruptcy on Tuesday.
The bankruptcies of Lehto's subsidiaries are becoming the biggest bankruptcies of the prevailing plight in construction.
The subsidiaries that filed for bankruptcy run Lehto's operational activities. In practice, they cover all of Lehto's business related to the construction of apartments and offices and thus make up the largest part of Lehto Group's turnover.
According to Lehto, the subsidiaries filing for bankruptcy no longer have sufficient funding to continue their operations.
In 2022, the turnover of the entire Lehto Group was approximately EUR 345 million. Even in 2018, the turnover was more than 720 million euros.
According to Asiakastieto, Lehto Asunto's turnover in 2022 was around 212 million euros, and Lehto facilities' around 130 million euros.
The grove subsidiaries Lehto Components and Insinöoritoimisto Mäkeläinen will continue to operate.
Lehto says that it is evaluating options for continuing, selling or reorganizing the operations of the parent company and the remaining subsidiaries. Alternatives also include the parent company's transition to new business areas, the company says.
For about a year, Lehto has been trying to find different structural and proprietary solutions to survive the downturn in construction.
In October, the company agreed on a letter of intent to sell its subsidiaries to an unnamed European management company, but this acquisition fell through in December.
Lehto warned at the time that without additional funding it would not be able to meet its payment obligations for the entire first quarter of the current year.
Nasdaq Helsinki announced after the publication of Lehto's press release that trading in Lehto's stock has been suspended on the Helsinki Stock Exchange at the company's request. The share price remained at EUR 0.03 on Monday.
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