Construction firm's bankruptcy debt rises to €54.3M

14/10/2025, 15:12

The bankruptcy of a Norwegian construction firm has revealed debts of €54.3 million, significantly higher than earlier estimates, with the bulk tied to housing developments that have since been acquired by other developers.

After the construction company Velbygd Prosjekt AS went bankrupt on September 1, 215 creditors have filed claims against the estate. The total debt amounts to over €54.3 million, reports Haugesunds Avis.

During the first creditors’ meeting on Friday, it emerged that the debt amount is nearly €17 million higher than previously estimated. The majority of the debt consists of bank loans linked to housing projects such as Toppen av Litlaskar, Krossneshagen and Vestlio 2, which have now been sold on.

Although A. Utvik and Norrøn Gruppen have purchased several of the projects, most of the purchase prices go directly to the lienholders instead of to the bankruptcy estate.

The bankruptcy trustee is questioning a series of transactions between the bankrupt subsidiary and the parent company that were carried out before the bankruptcy. Owner Børge Engen Andersen reportedly disagrees with parts of the report, according to the newspaper, but does not wish to comment further on the matter.