Cabin Project hit by second bankruptcy

A cabin project in Nesbyen has been struck by its second bankruptcy in a short period. After development company Buhovd Utvikling AS went bankrupt last year, the associated water and sewage company Buhovd Va – Drift AS has now also been placed under bankruptcy proceedings, reports Hallingdølen.

Ringerike and Hallingdal District Court has opened bankruptcy proceedings after the board itself filed for bankruptcy. The bankruptcy comes as a direct consequence of the development company’s bankruptcy.

“This bankruptcy is a direct consequence of the bankruptcy in the development company,” trustee and attorney Stian Hatleberg tells the newspaper.

The cabin project in Søre Buhovd was originally planned with 35 cabin plots in the Hallingnatten cabin community, but sales never properly took off. When the development company went bankrupt, only two plots had been sold.

Total debts of 14.3M

The water and sewage company had total debts of NOK 14.3 million, while the company only holds NOK 448,000 in liquid assets, according to Hallingdølen. The largest creditor is Sparebank 1 Hallingdal Valdres with a claim of NOK 11.8 million.

“We’re somewhat left holding the bag on this,” managing director Knut Oscar Fleten at the bank tells the newspaper.

The project was severely impacted by the decline in the cabin market, but the bank manager still hopes for a solution that can get the plots sold.

“The plots will be saleable at some point. I’m not worried,” says Fleten.