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Following today’s decision, the Local Court of Memmingen has opened ordinary insolvency proceedings for the assets of the buying and selling cooperative E.V.G – Ein- und Verkaufsgenossenschaft eG Erkheim. The court has appointed Dr. Thomas Karg from the Memmingen law firm Dr. Karg Puhlmann & Kollegen, who has until now acted as the insolvency monitor, as the insolvency administrator.
The preliminary proceedings, until now conducted with the debtor in possession, will continue as ordinary insolvency in the main proceedings. Therefore, Dr. Karg, the insolvency administrator appointed by the court, will now be solely responsible for conducting the proceedings.
E.V.G’s financial and structural problems were so profound that it was not possible to eliminate them to a sufficient degree in such a short period. In spite of intensive efforts and a large number of talks, no investor was prepared to implement an overall solution. Therefore, 193 employees have to be laid off. The employees have already been informed of this in a staff meeting. The step was unavoidable since the cooperative society cannot operate economically without an investor.
Now, stand-alone solutions are being considered for many of the 16 branches. As part of the ordinary insolvency proceedings, the individual branches are to be sold to individual interested parties. Ms Martina Hengartner, a business management expert who relinquishes her duties as the chief restructuring officer and leaves the cooperative society with effect from today, has held many talks in the past days. Further negotiations will now be held by the insolvency administrator Dr. Karg. However, no acceptable offers have been received yet.
“I would like to thank everybody concerned and above all the staff for their tireless efforts in the past weeks. Unfortunately, we did not succeed in finding an overall solution for the cooperative society. The financial and structural problems accumulated were too serious for this,” commented Martina Hengartner.
The insolvency administrator Dr. Thomas Karg explained, “In the past days, it has become more and more apparent that at most individual solutions are possible. My aim is now to sell as many branches as possible individually.”
E.V.G. had filed for debtor-in-possession proceedings with the Local Court of Memmingen on 24 August 2016. This step became inevitable due to a cash shortage.