The District Court of Buckeburg yesterday (1 July) opened Neschen AG’s insolvency proceedings and confirmed the self-administration of the company, and Arndt Geiwitz as trustee.??
“The insolvency proceedings will enable the company to relieve itself from its debt burden of the past,” said Bettina Breitenbucher, chief restructuring officer of Neschen AG.
Under the insolvency, outstanding loans could be settled, so that Neschen could focus on its future and invest. At the same time, Henrik Felbier, Board spokesman, stressed “that Neschen has so far developed well from an operative viewpoint and that we are continuing to expand our product portfolio.”
The positive trend has enabled the company to prevent job losses. Immediately before the insolvency proceedings were opened, it was also possible to conclude a long-term collective agreement solution for Neschen AG, which will replace the short-term restructuring agreements in place since 2009 and should provide investors with long-term security. “Neschen has proven itself as a reliable partner for its customers, suppliers and employees after the successful operative restructuring of the last three years and will emerge strengthened from the insolvency,” said Felbier.??
The Executive Board of Neschen AG filed for insolvency with an application for self-administration on 17 April this year. The reason for the insolvency application was the existing liability from an old credit agreement that the company cannot settle. As a result, it was not possible to issue a positive prognosis for the company. In this regard, Neschen agreed on a mediation procedure with the hedge fund for the legal disputes, which will start in mid-August. “It is important to note that the company nevertheless has remained solvent at all times. Of course, we have ensured that it will be possible to pay each new supplier order after the insolvency proceedings have been opened,” added Breitenbucher. ?