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GER - DGH-Group files for insolvency - Insolvency administrator checks reorganization

As we learn from Dresden, the die casting specialist "DGH-Group" has applied for the opening of insolvency proceedings. The proceedings concern the companies DGH Heidenau GmbH & Co. KG, DGH Hof GmbH & Co. KG and DGH ZIT GmbH & Co. KG. The responsible district court in Dresden appointed Dr. Dr. as provisional insolvency administrator Franz-Ludwig Danko from the Danko insolvency administration office, who is currently assessing the situation and examining the restructuring options.

"Business operations also continue in the preliminary insolvency proceedings," emphasized Danko. "The aim is to maintain business operations and as many jobs as possible...The insolvency money period gives us room to examine the options available for this in the next few weeks. As one of the leading suppliers of aluminum and magnesium die-cast parts, the DGH Group is technologically well positioned and an important and long-term partner for its customers. These are important basic requirements for a renovation."

All orders are processed in the usual quality, the wages and salaries of the approximately 650 employees are secured by the bankruptcy money.

Over the next few days and weeks, Danko will work closely with the management, customers and creditors to analyze the economic situation and the restructuring options.

In parallel, Danko has already contacted the company's customers, which include well-known automobile manufacturers.

The DGH-Group develops and manufactures vehicle parts made of die-cast aluminum and magnesium at the Dohna / Saxony and Hof / Bavaria sites. The focus is on structural, engine and transmission parts. The most recent annual turnover was around 70 million. Like many automotive companies, the DGH Group suffers from the decline in sales in the automotive industry, which has recently intensified due to the Corona crisis. The largest customers include BMW, Volkswagen, Porsche and Audi. Some of the employees have been on short-time work since March, although the order situation has recently stabilized somewhat.


 

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