LUXHAMMAR warning

Jan 1, 2019

Luxhammar company situation short description for all dealers and possible customers.

Problem – Luxhammar company, with Mr. Tero Lalluka, has not been able pay invoice since 11.12.2018
What money – As normal case, factory pays commission after successful sale. So as this case, Luxhammar sold the kiln to our customer after very long project. Which means they need to pay our commission as agreed.

Short overview.
After 7 months delay on delivery, it was small kiln, so when such long delay on delivery happened it was kind of surprise. But on the production delays can happen. So.
Installation and starting the kiln took 2 months. All this time I help them with transport from Finland to Estonia, unloading and organizing crane, and also during the installation all the possible problems. Driving in city to get some parts. Everything what one local dealer should do.
Not official confirmation customer paid to factory 26.11.2018.
At first there was explanation from factory that money has not arrived. Can’t say it for sure, but most likely just one try to delay to make commission payment to us.
Finally, 07.12.2018, after I explained that I make EU payments and international payments as well and it does not take that much time to receive money, factory confirmed (Mr. Tero Lalluka) that customer payment has arrived. Its very easy to say, since factory has received full amount then its only fair that factory, pays to dealer since we were working hard for the project as well.
And factory answer was that they have busy and don’t have time to make payment. As everyone can assume such answer is very insulting after so long project and hard work. So, it’s just a attempt to delay to hide actual reason why they can’t make the payment.
Then new explanation was that “they” need to make calculation for commission before payment. Ok, sounds bit fair to say that. But claiming they don’t have time to make 5 minutes calculation is again very insulting. So, they delayed to make this calculation until 11.01.2019. And on this calculation, they said they will pay it with 30 days. So, the “calculation” which was simple 3 rows calculation in excel took one month to make it. And then saying they pay it with 30 days.
And since January 2019 has been just several excuses to delay until 08.02.2019 they finally confirmed that hey have problems with money.
So, it means, they just took our money paying up some costs, without even asking it. So basically, taking a loan without asking could we survive. So, taking money, without asking, for sure everyone can understand, how that sounds in life.
In some point in this year factory one owner (Mr. Tero Lalluka) explained that second owner died. And this person son was heritor for this shares. But son did not agree on bank loan so that they were unable to proceed with that and they need to get rid of that person. Which happened in some point. And that they are now able to proceed. But they need to finish 2017 and 2018 business year turnover documents. Which were still not done, even its was already 2019. Not sure Finland rules, maybe its OK.

Update 22.05.2019
07.05.2019 we had short meeting in Estonia. Factory person, together with new second share holder, said that they will need to make this bank loan very fast, since they need to pay also for Ligna 2019 exhibition fee on 21.05 or 22.05.2019 not sure. But even today, 22.05.2019, the turnover documents have not done, which clearly mean they can’t get any bank loans. That is fact in any country to get bank loans for company.
During last week, there was also “explanation” that one of their customers made the payment. No way to be sure, but as they (Hr. Tero Lalluka) said, customer made the first attempt to make payment but with incorrect bank account (IBAN). And that on second attempt they sent money with not correct receivers name. Could You imagine, that You are buying a kiln, which costs millions, and You make not correct payment two times on a row? I certainly can’t believe that 100%. Yes, we are all humans and we make mistakes. But when making such big bank transfers then it’s safe to assume that for sure everyone will check details twice. Probably even more. But OK, people are people and make mistakes. Even it does not feel right.
So, on 22.05.2019, they have not made any payment.
They are still listed on LIGNA 2019 exhibition center webpage as Exhibitor list. That makes to believe they actually have made the payment for them. I am not sure the Ligna exhibition rules, but generally such contracts probably have some late cancellation fees to make sure everyone’s who promised to come are actually coming not to ruin this exhibition organizers on “bad light” on visitors eyes. But since no ways to be sure cant say that on 100%.
I will try to get comments from Ligna exhibition center trough official channels and will inform with the new facts soon.

23.05.2019 – Factory confirms that they are in LIGNA and busy building a booth.
So, it is confirmed that they got the money. But again, any previous “story’s” are just stories, and it looks like they actually never had plans to honor previous agreements.
Reason to believe that is very simple thing in life, that if something does not go as planned, specially after so many problems already, You just pick up a phone and try to figure out between both sides.
But in fact, that never happened form Luxhammar company side. Always needed to make contact from our side and just beg our money.


So, the next step left is just trough the official channels. What most likely needs to involve standard bankruptcy case, because so far there is no reason to believe any longer that factory will to that willingly.

Will keep updating this post when there is new details.

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