Approximately 1,800 employees in Germany are affected. The Local Court of Wuppertal appointed Joachim Exner, attorney from the law firm Dr. Beck und Partner, as the provisional insolvency administrator for all insolvent companies. Exner is currently on site to assess the situation and examine the options for a restructuring.
‘Business operations will continue as usual at all WKW.group locations and companies worldwide,’ emphasised Exner. ‘All orders will continue to be manufactured without restriction and delivered as usual.’ The wages and salaries of the approximately 1,800 employees affected in Germany are secured up to and including November by the insolvency substitute benefits.
After Walter Klein GmbH & Co. KG, Wuppertal, and WKW Aktiengesellschaft, Velbert, initially filed for insolvency last week, the following additional companies have now filed for insolvency:
Erbslöh Aluminium GmbH, Velbert and Hemer (branch)
WKW Engineering GmbH, Wuppertal
WKW Roof Rail GmbH, Velbert
WKW AnodiCoat GmbH & Co. KG, Sprockhövel
The competent insolvency court has combined the proceedings and bundled them at Exner as the provisional insolvency administrator. This increases the chances of a comprehensive reorganisation. Not affected are WKW Unternehmens-Akademie GmbH, Velbert,
WKW Verwaltung GmbH, Velbert, as well as the companies in Hungary, France, Monaco, Tunisia and the USA.
The preliminary insolvency administrator, together with the management, has informed most of the employees of WKW Aktiengesellschaft and Walter Klein GmbH & Co. KG about the situation in employee meetings. Further works meetings will take place next Monday and Tuesday. He and his team are currently gaining an overview of the economic situation at the locations and examining the restructuring options. Which paths are possible and promising will become clearer in the next few days and weeks. ‘The clear goal is to maintain the company and as many jobs as possible,’ emphasised Exner.
At the same time, Exner has already contacted the company's customers, which include well-known automobile manufacturers. There have been initial positive developments here. The customers have declared their willingness to continue working with the WKW.group and to support a continuation. ‘This is an important signal and a good basis for the discussions and negotiations with potential investors, which will start soon,’ said the provisional insolvency administrator.
Like the entire supplier industry, the WKW.group is suffering from the weak economic situation in the automotive industry. The management initiated a restructuring process some time ago and was negotiating the entry of an investor. Since it was not possible to reach a conclusion to the sales negotiations in the short term, the management decided to continue the restructuring process within the insolvency proceedings. The investor process is now to be set up or resumed under insolvency conditions. ‘Insolvency proceedings have the great advantage that an investor can take over the company without debt,’ explained Exner. ‘As a rule, this gives the process new momentum.’
The WKW Group manufactures decorative and functional components as well as roof railing systems made of aluminium, steel and plastic. The company's customers include numerous major German automobile manufacturers. The group most recently generated an annual turnover of 560 million euros and employs a total of 3,300 people in six countries.
Short profile of law firm Dr. Beck & Partner:
With 8 insolvency administrators and more than 170 employees at 8 locations in Bavaria, the law firm Dr. Beck & Partner GbR is one of Germany's leading insolvency administration law firms. In recent years, the law firm has handled numerous high-profile corporate insolvencies, including those of groups with international operations. Joachim Exner has particular experience in the restructuring of medium-sized corporate groups, e.g. EISENMANN, Neumayer-Tekfor, BOA-Group, Loewe and Metz. Exner is a member of the Gravenbruch Circle, the association of leading German restructuring experts and insolvency administrators.
Further information can be found at: www.ra-dr-beck.de
Source: www.moeller-pr.de