Oulu District Court reviews financial transactions linked to MGP Services Oy and Luxembourg-based firm
The Oulu District Court is currently reviewing issues surrounding financial transactions linked to the Oulu Market Hotel’s former developer, MGP Services Oy. According to the company’s bankruptcy estate, MGP Services favored a Luxembourg-based company associated with key figure Jyrki Hallikainen, to the detriment of other creditors. This arrangement allegedly allowed assets to be concealed from other creditors as the company faced declining financial stability.
The case involves €62,186 in rents that MGP Services Oy paid to MGP Services S.a.r.l. for office space from 2021 to 2022, with Hallikainen being the owner of the Luxembourg company. An independent audit revealed that MGP Services Oy became insolvent in April 2021 after a financier withdrew support from Real Estate Ltd. Oulu Market Hotel. The audit found no verifiable lease agreement for the office space, indicating the premises were not related to the debtor’s business.
According to the bankruptcy estate’s rationale, the payments do not pertain to normal business operations and were made to a closely associated company. Thus, the contract should be partially or wholly considered a gift. The Oulu District Court is now addressing the bankruptcy estate’s claim for the reimbursement of funds paid to MGP Services S.a.r.l., together with interest and legal fees.
In response, the Luxembourg company denies any prior knowledge of MGP Services Oy’s insolvency when the rents were paid, asserting that the Finnish company only became insolvent at the earliest in December 2022. MGP Services S.a.r.l. claims there were legitimate commercial grounds for the lease agreements and that the rent was reasonable.
The court proceedings began with a preparatory session on Monday, and the main hearing is slated for December, leaving room for a potential settlement. Hallikainen is also known as the founder of Uros. MGP Services Oy’s bankruptcy was initiated on January 10, 2023.