Feldmuehle – Filing for insolvency under self-administration
GERMANY • The management of Feldmuehle GmbH, a manufacturer and provider of high-quality white coated packaging papers, label papers and graphic papers for the German and international market has decided to carry out the necessary reorganization/restructuring of the company within the framework of insolvency proceedings under its own administration. Therfore, on November 19, 2018, it filed for an application with the competent local court to open insolvency proceedings under its own administration pursuant.
Feldmuehle GmbH, which in the spring of 2018, took over the business operations of Feldmuehle Uetersen 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. 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 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.