Helsinki Hall faces bankruptcy as financial struggles escalate in Finland

Helsinki Hall, also known as Helsingin Areena, is facing severe financial distress, with the threat of bankruptcy looming, according to Helsingin Sanomat. The company operating the arena, Helsinki Halli oy, is unable to meet its financial obligations. It owes more than €100,000 to the City of Helsinki, primarily in overdue lease payments, which total approximately €106,000 with interest. Overall debts are reportedly in the hundreds of thousands of euros, which could enable multiple creditors to file for the company’s bankruptcy.

The situation has become critical, with the arena’s district heating already cut off due to unpaid bills to the energy provider, Helen. The company’s insolvency is attributed to EU sanctions that have frozen its cash reserves. Previously, essential bills had been paid by third parties, with the Ministry of Foreign Affairs granting exemptions for these payments. However, in June, the ministry clarified that only the hall company could settle these debts moving forward.

Currently, the arena is unable to cover these payments, as Finnish banks are not processing transactions for the company due to the sanctions. Emeritus Professor Risto Koulun, an expert in procedural law, noted that while creditors could attempt to file for bankruptcy, the arena’s Russian owners might contest claims of insolvency, arguing that their funds are frozen due to the sanctions.

The arena has remained largely unused for over two years due to the extensive sanctions following Russia’s invasion of Ukraine. Arena Events, controlled by Russian oligarchs including Gennadi Timtshenko and Boris Rotenberg, holds a majority stake in the company. Roman Rotenberg, the son of Boris, is the only one not affected by the EU sanctions.