The search for an investor for the insolvent automotive supplier DGH Sand Casting in Friedrichshafen is making progress. Several interested parties are currently examining a possible takeover. In the meantime, the responsible Ravensburg District Court has opened insolvency proceedings. Business operations are continuing in full even in the opened proceedings.
"The initial response to the investor process is very pleasing," emphasised Franz-Ludwig Danko, who was appointed insolvency administrator with the court's opening order. Danko is currently holding talks with several interested parties, including strategic investors, i.e. companies from the industry, as well as financial investors. Site visits have already taken place with interested parties, and further appointments are planned in the near future. "During the visits, the company was able to visibly score points with its sand casting know-how and the efficiency of its modern production."
In the meantime, the day-to-day business has been stabilised to such an extent that the company can continue its business operations even in the opened insolvency proceedings - now again under full costs. This is because the opening of insolvency proceedings on 1 September also marks the end of the insolvency benefit period, i.e. the company has to generate and pay the wages and salaries of its approximately 265 employees itself again with immediate effect.
In order to secure the continuation of business operations in the longer term, Danko has concluded a so-called "continuation agreement" with the company's most important customers. The contractual agreement runs until 31 March 2023 - with an option to extend. "The continuation agreement now gives us and the customers seven months of planning security," the insolvency administrator emphasised. "We want to use this time to push ahead with the restructuring and the search for investors."
Danko thanked the employees for their commitment over the past three months: "The initial phase of a company insolvency is always somewhat hectic, and the extraordinary market situation forces us time and again to find unconventional solutions," said the insolvency administrator. "The employees are showing great commitment and cool heads and have played a big part in the fact that we are now steering back into calmer waters."
DGH Sand Casting manufactures aluminium sand casting parts in Friedrichshafen for use in the automotive industry (passenger cars and commercial vehicles) as well as in energy and heating technology. Its products include lightweight parts and components for chassis and powertrains - for both internal combustion and electric vehicles, as well as heat exchangers for heating systems. The company's customers are well-known companies from the automotive industry and heating construction. The most recent annual turnover was around 37.8 million euros.
Like many industrial companies, DGH Sand Casting is suffering from the consequences of the Corona pandemic. Since the beginning of the pandemic, sales have dropped by about 35 percent. The chip shortage as well as the war in Ukraine with its effects on supply chains and energy prices had recently aggravated the situation to such an extent that the company had to file for insolvency in June.
About Danko Insolvenzverwaltung
The law firm "Danko Insolvenzverwaltung" stands for over twenty years of experience in the fields of corporate restructuring, insolvency and labour law. With an interdisciplinary team of insolvency, labour and tax lawyers as well as business economists and clerks, the firm is able to successfully handle even larger insolvency proceedings and extensive mandates. Among the renowned reference proceedings of the firm's founder Dr Franz-Ludwig Danko are the automotive suppliers Druckguss Heidenau, FINOBA Automotive, Spezialguss Wetzlar and ttb Group, the aircraft outfitter Anolis Interiors, The firm has offices in Frankfurt am Main, Dresden and Kassel.