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Good news for creditors of the insolvent Richard Frank GmbH: restructuring expert Mr Michael Pluta from PLUTA Rechtsanwalts GmbH can distribute almost a million euros among them. The recovery rate will be 84%, an above-average amount.
The long-standing Stuttgart-based manufacturer and fitter of parquet flooring filed for insolvency in 2014. It was not possible to restructure the company. Mr Michael Pluta, acting in his role as insolvency administrator, had to shut down the business after a few weeks.
The main reason for the high recovery rate is that the parent company, which owned the company premises, was able to sell this at an attractive price. Although the parent company was not involved in insolvency proceedings, Richard Frank GmbH had significant claims against it and enforced these during the proceedings. Mr Pluta also succeeded in contesting debtor’s transactions and asserting liability claims for the benefit of the insolvency estate.
Restructuring expert Mr Pluta explained, “Thanks to good cooperation with all involved at the time, it was possible to sell the property concerned, owned by the parent company, outside of the insolvency proceedings. The creditors will especially benefit from this. In spite of the company’s liquidation, we have achieved an exceptionally high rate of 84% for the unsecured creditors.” Mr Pluta was supported in the proceedings by attorney Mr Heinz-Joachim Hombach.
The final meeting will now take place in late November 2020. This means that the insolvency proceedings will have been concluded within six years of being opened.