Finland
cured creditors. Holders of floating charges will stand pari passu with (other) unsecured creditors for satisfaction of their excess claims from the 50% balance of the net proceeds.
Real estate mortgage The beneficiary of a real estate mortgage is entitled to 100% of the net proceeds of the mortgaged property, up to the amount of the secured debt. Under Finnish law, before the commence-
ment of insolvency proceedings, a real estate mortgage may only be enforced by public means through public enforcement authori- ties and only following a judgment by the court. After the insolvency proceedings have been commenced, the options available for the enforcement are: • private (or public) sale by the liquidator with the consent of the relevant secured creditors;
• private sale by the liquidator with the approval by the court despite the opposi-
tion by the secured creditors;
• enforcement by the secured creditor inde- pendent from the bankruptcy proceedings through public enforcement authorities (public sale); and
• public sale by the liquidator without the consent of the secured creditors after three years from the commencement of the bankruptcy proceedings.
Enforcement in company administration If company administration proceedings have been commenced against the pledgor/char- gor, the security can no longer be enforced independently (with the exception of security qualifying as financial collateral under the Finnish Act on Financial Collateral) nor can the underlying loans be accelerated against the pledgor, and any enforcement action already commenced (but not completed) will be discontinued. If the administration programme is
accepted by the court, the enforcement of the security is to be covered by the administration programme.
Market trends Despite the economic climate, the number of significant casualties of insolvency is still very low in Finland. The most notable have been the failures of the wind power and industrial gear manufacturing company Moventas and the electronics manufacturer Elcoteq in 2011, and Bronda (a portfolio of 16 commercial real estate companies) in 2012. A number of large companies in dis- tress, such as Paroc and the European Directories Group, have been restructured through creditors’ consensual arrangements. As in each of the above cases, large restruc- turings and insolvencies in the Finnish mar- ket almost invariably appear to involve extensive cross-border elements, are highly complex, and require multi-jurisdictional and multi-disciplinary efforts.
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