The Helsinki District Court has ordered the Youth Foundation's corporate reorganization proceedings to be terminated.

According to the law, the foundation is insolvent and is not removed by the liquidators' reorganization program proposal.

The district court estimates that further processing of the restructuring program would still incur significant costs for the foundation, and it would continue to be unable to pay its new debts and possibly incur more debt.

A criminal investigation into the previous management of the foundation is also an obstacle to the continuation of the proceedings, the district court press release says.