GER - Insolvency administrator reports rescue of the iron foundry

Business operation of the Haslocher company may continue "with successful restructuring process".

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Eisenguss Hasloch Smart Foundry GmbH (EGH) had to file an application to open insolvency proceedings with the Würzburg District Court on January 28, 2020. The court then ordered provisional self-administration in January.

The restructuring expert Sebastian Braun, specialist lawyer for insolvency law at the law firm Reinhart Kober Großkinsky Braun, as well as the provisional administrator appointed by the district court of Würzburg, lawyer Tobias Rußwurm have to report positive news in a joint press release: The restructuring of the company, the preservation of the location and the saving of many jobs be within reach.

Business operations stopped at the beginning of the year. Already about three weeks before the application for insolvency proceedings in self-administration, nothing could be produced. The aim of the inevitable process was to continue the restructuring process initiated last year under the protection of insolvency law and to stabilize the company sustainably with support.

It took extraordinary effort on the part of everyone involved - especially the management - to get the business going again. Many thanks go to the former owner of the company and landlord, the Kurtz Ersa Group, who generously supported Eisenguss Hasloch Smart Foundry. The works council, IG Metall and all of the company's staff had also contributed constructively to the solution that had now been found.

Despite the fact that the corona crisis was not foreseeable at the time of the application, the company was able to maintain business operations. The corona crisis "hit us hard" but our team was not able to "knock it down", explained Managing Director Rainer Langnickel.

Desired renovation
The creditors' committee had already approved the proposed restructuring solution. This provides for the minority stake in EGH from another shareholder who has also signed the relevant agreements. The previous shareholder, Rheinische Mittelstandsbeteiligung GmbH, also made a significant financial contribution to the implementation of the renovation solution. The business operations under the previous management will remain intact. The location will also be preserved, with around 70 of the jobs.

The first meeting of creditors will take place on Thursday in front of the Würzburg district court. The bankruptcy plan is expected to be presented to the court in August. "Approval in the voting date can be assumed given the creditor structure," says Braun.