24.2.2016

EcoStream and L&T Recoil – Bankruptcy

EcoStream was an oil reclamation group from Hamina, on the southern coast of Finland. Parent company EcoStream was responsible for the sale of reclaimed oil, and subsidiary L&T Recoil was responsible for the actual oil reclamation. At the start of 2014, both companies ran into insurmountable financial difficulties, and they filed for bankruptcy in March 2014. C&S partner Pauliina Tenhunen, who specialises in insolvency matters, was appointed as the administrator for both bankruptcy estates.

The oil reclamation plant located in the port of Hamina is one of a kind in Finland. The plant has the capacity to process all of the waste oil produced in Finland ecologically, turning it into high-quality base oil. The project was tripped up by higher-than-anticipated construction costs and by the price of base oil falling along with global oil prices.

The bankruptcy estates quickly put the reclamation plant up for sale in cooperation with the secured creditors. A domestic buyer was quickly found for the plant, and the plant is now running under the new ownership.