Two prominent Danish bankruptcy lawyers, Anders Hoffmann Kønigsfeldt and Troels Tuxen, are under investigation following the emergence of hidden recordings that suggest potential misconduct in a bankruptcy case. The Danish Tax Agency initiated the investigation after the recordings surfaced in late 2024, focusing on a specific bankruptcy case where Kønigsfeldt served as trustee.

The preliminary investigation, led by lawyer Andreas Mylin, has raised serious concerns. Mylin’s findings indicate that Kønigsfeldt and Tuxen may have contributed to the sale of assets from the bankrupt estate at a price significantly below their commercial value and without a proper sales process.

The case revolves around the company Livehouse, a video platform for virtual events that experienced rapid growth during the COVID-19 pandemic. After financial difficulties arose in the summer of 2023, the company filed for bankruptcy. Recordings suggest that Kønigsfeldt and Tuxen, then partners at Bech-Bruun, may have facilitated a plan for a client to acquire Livehouse’s assets at a fraction of their worth.

Martin Elsborg, the former director of Livehouse, secretly recorded meetings with the lawyers, suspecting that they were acting in the interest of a major shareholder, Dico ApS, rather than working to save the company. Elsborg’s recordings allegedly capture discussions about letting Livehouse go bankrupt so that its assets could be bought out cheaply.

The investigation has also scrutinized a valuation report for Livehouse’s assets. The initial draft valued the assets at 16.3 million kroner, but this was drastically reduced to 1.8 million kroner after discussions between Tuxen and the report’s author.

Kønigsfeldt denies any wrongdoing, asserting that the company was sold on market terms after a legitimate sales process. Tuxen has previously stated that he does not believe he made any mistakes but has declined to comment on the new conclusions.

The law firm Bech-Bruun potentially faces a substantial claim for damages in connection with the Livehouse case. Kønigsfeldt, a partner at Bech-Bruun, is a vice-chairman of the Danish Insolvency Lawyers and a permanent trustee at the Maritime and Commercial High Court.

Mylin’s investigation also revealed an “unjustified withdrawal” of funds from the bankruptcy estate to Bech-Bruun, which Kønigsfeldt attributed to a mistake and has since been rectified.