Bankruptcy Estate After Danish Butcher Has 155 Million Kroner to Claim

The bankruptcy estate of the Danish butcher Skare Meat Packers is set to recover 155 million kroner from two closely related companies based in France and Spain, as well as the owner of all three entities. The ruling came from the Court in Esbjerg on Thursday.

These two companies were responsible for reselling the slaughterhouse's products, leading to substantial outstanding debts owed to Skare Meat Packers. The core of the legal dispute involved accounting changes made on February 1, 2023, the day before Skare Meat Packers declared bankruptcy. These changes had reduced the debt owed by the two foreign companies by approximately 112 million kroner, based on a prior assessment that they had not operated under market conditions.

However, the court found these changes to be invalid, concluding that the debt had not been extinguished. Consequently, the Spanish company has been ordered to pay 121.8 million kroner to the bankruptcy estate, while the French company owes 34 million kroner. The owner's personal guarantee means he is personally liable for the debt. Since he has also declared bankruptcy, his personal bankruptcy estate now stands in his place.

The court's decision emphasized that the issue of settlement prices between the companies was raised only shortly before the bankruptcy. Furthermore, the court noted that there was insufficient documentation to support the debt reduction. The ruling also highlighted that the owner of all the companies would have been the primary beneficiary of the decision.