German Papermaker Feldmuehle Files for Insolvency under Self-Administration
Feldmuehle GmbH operates a paper mill in Uetersen, Germany, near to Hamburg. The mill has an annual production capacity of approximately 250,000 tons with two paper machines.
Nov. 20, 2018 (Press Release) - Feldmuehle GmbH, which in the spring of 2018, took over the business operations of Feldmuehle Uetersen GmbH through acquisition of all substantial assets, has been adversely and unforeseeably affected this current year by unexpected increased energy costs and procurement prices for raw materials.
During the current year, management has implemented extensive measures to increase operating profitability. Despite these efforts, the latently rising variable costs could not be offset by implemented price increases, partly due to the company's lower-than-expected revenues in September and October 2018. Considering these circumstances, the management has decided to carry out the necessary reorganization/restructuring of the company within the framework of insolvency proceedings under its own administration and, on November 19, 2018, filed for an application with the competent local court in Pinneberg to open insolvency proceedings under its own administration pursuant to Sections 270, 270 a para. 1 InsO (German Insolvency Act).
Following the management's application, the Pinneberg Local Court ordered the provisional self-administration on the same day. Dr. Dietmar Penzlin of Schmidt- Jortzig Petersen Penzlin Insolvenzverwaltung Partnerschaft von Rechtsanwälten mbB, Hamburg, was appointed as provisional administrator. The provisional administrator shall examine the economic situation and supervise the management. However, the company's management retains power of disposition.
Restructuring within the framework of self-administration gives the company's management the opportunity to undertake and respectively implement all necessary measures to improve profitability and thus to take measures towards the company's sustainable competitiveness.
At the same time, an application to the Pinneberg Local Court has been filed that future deliveries and services ordered by Feldmuehle GmbH shall be paid as mass liabilities. Business operations will be continued.
Feldmuehle GmbH operates a paper mill in Uetersen, Germany, near to Hamburg. The company employs around 400 employees with a yearly production capacity of approximately 250,000 tons with two paper machines. The product portfolio includes label paper, flexible packaging paper, graphic kraftliner, SBS board and coated fine paper. To learn more, please visit: www.feldmuehle-uetersen.com.
SOURCE: Feldmuehle GmbH