Creditors of the World Championships are offered just under 60 percent of what they are owed. According to NRK, the Trondheim World Championships are running a NOK 37 million deficit (≈ EUR 3.2 million / USD 3.45 million). In a week, the company could face bankruptcy if some creditors do not accept the offer.

There has been intense work to clean up after the scandal in Trondheim. NRK now reports that the World Championships owe NOK 94 million (≈ EUR 8.1 million / USD 8.75 million) and have only NOK 57 million (≈ EUR 4.9 million / USD 5.3 million) either in the bank or expected to come in. This puts the company on course for a NOK 37 million (≈ EUR 3.2 million / USD 3.45 million) shortfall.

The figures come from a letter sent on Wednesday to the 114 creditors of the Trondheim World Championships. The situation is very similar to the 2017 Road Cycling World Championships in Bergen, where a creditor rejected the organizer’s offer, forcing them into bankruptcy.

That could happen here as well. The Ski World Championships are now offering creditors just under 60 percent repayment, which is the estimated payout ratio they believe they can manage.

All creditors with claims of NOK 40,000 (≈ EUR 3,440 / USD 3,720) or less will receive full payment. This means that about half of the creditors will get everything they have claimed.

Those owed more than NOK 40,000 will first receive 50 percent of the amount exceeding that threshold. Then, they are expected to receive about an additional 7 percent in a later payment, according to NRK.

Also Read: Falun 2027 alarmed by Norwegian World Championship fiasco in Trondheim

Companies now have until Wednesday, July 16, at 16:00 to decide whether to accept the proposal. Those who do not receive full repayment will vote on whether to approve the settlement.

Among the losers are also the owners of the World Championships: the Norwegian Ski Association, the Sør-Trøndelag Ski Association, and Trondheim municipality. According to the letter to the creditors, these entities have also “borne heavy burdens.”

“The regional ski association will not recover its claim, the Ski Association has reduced its creditor claim by nearly 40 percent, and the municipality has significantly exceeded its budget for temporary infrastructure by many millions,” the letter states.

The Ski Association had expected the championships to generate a profit of NOK 20 million (≈ EUR 1.72 million / USD 1.86 million). They lent NOK 8 million (≈ EUR 688,000 / USD 744,000) to the event. They have now waived NOK 3.2 million (≈ EUR 275,000 / USD 298,000) of that, and with a 60 percent payout, they will recover about NOK 4.8 million (≈ EUR 413,000 / USD 446,000) of the loan.

“If anyone votes no and this is not quickly resolved, the most likely outcome is bankruptcy. This is expected to cut the repayment rate at least in half, i.e., down to about 30 percent,” the letter from the World Championships company states.

That is exactly what happened with the Cycling World Championships in Bergen.

NRK also reports that the letter reveals two creditors have not agreed to reduce their claims. One is the transport company AtB, which has a municipal guarantee for its claims. The other creditor has not yet been identified.

Currency conversions are approximate. Exchange rate: NOK 10 ≈ EUR 0.86 / USD 0.93.

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