Otterndorf-based clinic files to open provisional debtor-in-possession proceedings

• Patient care and all services to be fully maintained
• Employee salaries guaranteed
• PLUTA restructuring expert Dr Kaufmann supporting the proceedings as provisional insolvency monitor

Krankenhaus Land Hadeln Otterndorf GmbH, a clinic serving Otterndorf and the Land Hadeln district, has filed an application for the opening of debtor-in-possession insolvency proceedings. Patient care at the clinic will be fully maintained and continue without change. All courses of treatment and operations will go ahead. The coronavirus pandemic has triggered a liquidity crisis, which the clinic intends to resolve within the framework of debtor-in-possession proceedings. Employee salaries are guaranteed. The proceedings are expected to be concluded within six months at the latest.

Yesterday, the Local Court of Cuxhaven then appointed Dr Christian Kaufmann from PLUTA Rechtsanwalts GmbH as provisional insolvency monitor. Dr Kaufmann will monitor the proceedings and represent the interests of the creditors. He will be supported in the proceedings by a PLUTA team with Mr Peter Roeger, Mr Jürgen Schendel and Mr Soeren Eckhoff.

Due to the coronavirus pandemic, the number of patients attending the clinic has been falling for months. This has had a significantly negative impact on the clinic’s financial situation. Compensation payments announced by policymakers are linked to various criteria. As the clinic does not meet all of these in full, the German government and the relevant agencies have not paid any compensation since October 2020. “We cannot understand the lack of support from public bodies at national level,” said Mr Sigurd Gawinski, managing director of Krankenhaus Land Hadeln Otterndorf GmbH, explaining the situation. “On the other hand, we have been receiving very strong encouragement from those in charge here locally and from the state of Lower Saxony. This clearly illustrates to us that we are not alone in viewing our clinic as an extremely important facility for this region.”

Employees were informed yesterday about the debtor-in-possession proceedings aimed at restructuring the clinic’s finances. Nothing will change for the employees, who will not incur any financial loss. Their salaries will be guaranteed for the next three months by the Federal Employment Agency, after which the clinic will resume paying them.

“The debtor-in-possession proceedings will allow us to keep the clinic fully operational while we quickly resolve the financial situation and thereby enter the second half of the year in a stronger position,” said Mr André Eydt, managing director of Krankenhaus Land Hadeln Otterndorf GmbH. “We offer an excellent range of medical services that are also geared towards people’s future needs. Our clinic is and remains an important and reliable anchor of care in the region.” Management and the clinic will be supported by attorney Mr Gunther Neef from law firm Neef Schwarz & Kollegen Rechtsanwaltsgesellschaft mbH, which specialises in insolvency law and restructuring matters.

The medical team, administrative director Ms Ulrike Kömpe and managing directors Mr André Eydt and Mr Sigurd Gawinski have already made successful inroads into putting the clinic on a viable footing. For example, the clinic’s medical services were recently expanded: in addition to its important basic and standard care offerings, it also offers services covering general and visceral surgery, internal medicine and gastroenterology, geriatrics, trauma and hand surgery, orthopaedics, anaesthesia and spine surgery. Furthermore, it runs a central emergency department. The clinic is mainly responsible for providing acute care to the Land Hadeln and Hemmoor administrative districts, the areas surrounding the town of Cuxhaven and parts of the Stade district. “We consider it our work and role to provide regional medical care in partnership with all specialists and GPs as well as the other health partners in the region,” said Ms Ulrike Kömpe, the clinic’s administrative director, emphasising the clinic’s mission and direction.

Dr Christian Kaufmann, the provisional insolvency monitor, explained: “Debtor-in-possession proceedings are a suitable instrument for restructuring clinics. We know that the coronavirus pandemic has made patients very reluctant to attend hospitals. These worries are unfounded, as hygiene concepts are being strictly adhered to. As more of the population is vaccinated, patients will also be increasingly willing to attend clinics for treatment.”