14.4.2020

Open Dialogue Is the Key to Weathering a Financing Crisis

The global emergency and economic downturn are posing serious financing challenges to many companies. The best way to weather this crisis is to take an active and open approach to avoiding and dealing with the fallout of these challenges.

The first thing on any company’s to-do list should be securing liquidity. Many companies are preserving their cash assets and looking to cash in whatever assets they can.

Many companies are also taking a hard look out outgoing cash flows. Excess costs are being eliminated and planned investments are being postponed. A simple but good piece of advice is to pay close attention to your invoicing and maintain a rapid circulation of invoices, as this can help reduce your credit loss risk. You can also negotiate with your financiers on postponing loan payments.

When in the middle of the storm, it is important to still try to take a long view. If ever there was a time to analyse your company’s financing agreements and how they will be impacted by changes in your operating environment, it is now. As your top priority, I would advise checking what kind of financial covenants are in your loan agreements—and whether you will be able to comply with them. Depending on your covenants, 2–3 bad months now could continue to cast a shadow well into next year.

Maintaining an open dialogue with your financiers will improve your company’s ability to make it through this crisis. When your financiers have a clear picture of situation, it will be easier for them to see any problems in advance and agree on what to do. Maintaining trust is the key.

It is important to remember—just as in the financial crisis—that trying to hide things helps no one. If you were already having trouble in your business, you have to face up to that and resist the urge to fold them into any problems caused by the coronavirus pandemic. The few weeks of experience we’ve now had has already proven that this is the best way forward.

Latest references

We acted as the Finnish legal counsel for the funders to Nevel Oy in a EUR 665 million refinancing arrangement through a mix of multicurrency bank loans and private placement notes. Nevel is a utility infrastructure company offering advanced industrial and real estate infrastructure solutions that are fit-for-purpose and future-proof. The transaction supports Nevel’s growth strategy and its goal to help customers to achieve climate goals.
Case published 20.8.2025
We advised Triton Partners and Habeo Group in a leveraged financing arrangement with Danske Bank A/S, Nordea Bank Abp and Skandinaviska Enskilda Banken AB. The financing included facilities amounting to EUR 80 million for refinancing, acquisitions and other general corporate purposes. Habeo Group is a comprehensive service provider in the technical building services sector, cultivating the value of buildings throughout their lifecycle. The group employs some 600 technical building services professionals. In 2023, we advised Triton in its platform investment, the formation of Habeo Group, through its acquisition and financing of eight Finnish companies.  
Case published 7.8.2025
We advised The Mortgage Society of Finland in the update of a EUR 2,5 billion bond programme under which the Mortgage Society of Finland may issue senior preferred and unsecured Tier 2 notes, and covered bonds. The notes under the programme may be listed on the official list of Nasdaq Helsinki Ltd.  The Mortgage Society of Finland is the only nationwide credit institution in Finland that focuses on housing. It provides customers with the full range of home financing services such as granting mortgage and consumer loans for all stages of home owning including purchasing and renovating. The Mortgage Society of Finland carries out this activity in accordance with the Act on Credit Institutions and the Act on Mortgage Societies.
Case published 5.8.2025
We advised Nevel Oy in its acquisition of the business of Labio Oy. Lahti Aqua Oy and Salpakierto Oy sold their entire shareholdings in Labio to Nevel, expanding Nevel’s already significant biogas portfolio. The transaction will have no impact on Lahti Aqua’s water utility operations or Salpakierto’s municipal waste management responsibilities. Labio’s operations and customer relationships will continue as before. ‘This partnership is a natural next step for us as we continue investing in sustainable material efficiency and renewable energy solutions. By integrating Labio’s comprehensive offerings and expertise, we can provide customers with a strong platform for material circularity. We are also strengthening our market position as one of Finland’s leading material efficiency solution providers,’ says Ville Koikkalainen, Director of Industrial and Biogas Business at Nevel. Nevel is an energy infrastructure company offering advanced, climate-positive solutions for industry and real estate. It operates more than 130 energy production plants and manages over 40 district heating networks. Nevel’s annual turnover is EUR 150 million, and it employs 190 experts in Finland, Sweden and Estonia.
Case published 16.7.2025