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SFI Stotz Fredenhagen Industries GmbH filed an application for debtor-in-possession proceedings on 9 April 2019. The company is provided with support and advice by the restructuring expert and general agent Mr Steffen Beck from PLUTA Rechtsanwalts GmbH.
The Local Court of Ludwigsburg appointed Dr Dietmar Haffa from the law firm Schultze & Braun as the provisional insolvency monitor. He will monitor and oversee the proceedings in the interests of the creditors. Business operations of the long-established company, based in Kornwestheim in Swabia, will continue without any restrictions. The salaries of the 127 employees are guaranteed for a period of three months thanks to so-called insolvency substitute benefits. The staff has already been informed of the situation by those responsible during a meeting. Filing for insolvency became inevitable for the manufacturer of plant and automation systems due to liquidity problems, which were caused by new international construction projects and a drop in revenues during recent months.
A comprehensive restructuring concept
In the coming weeks, a feasible restructuring concept will be drafted, together with the auditing firm Ernst & Young, to verify the company’s processes and to determine the necessary restructuring measures. “Debtor-in-possession proceedings give us the opportunity to get the company, with its long history, back on track for the future. The concept to be drafted will allow us to align the company with the challenges of the future,” said Mr Clemens Vollmer, Managing Director of SFI.
The management team will be supported in the proceedings by the experienced restructuring expert Mr Steffen Beck. He is already on site, in the company, together with his team, and is providing the company with advice in restructuring matters in his function as a general agent. “Everybody involved is pulling in the same direction. The staff is highly motivated. That is a good starting point for restructuring the company on a sustained basis,” said the attorney Mr Beck. PLUTA’s team also includes the attorneys Mr Michael Reichold and Mr Jonas Scheble.
About the proceedings
Debtor-in-possession proceedings ensure that the company has a reliable basis for planning and also allow creditors’ interests to be taken into account. The company is permitted to manage the restructuring process itself, supported by experienced restructuring experts and supervised by an insolvency monitor. The management board remains in office during debtor-in-possession proceedings.
About the company
The origins of SFI Stotz Fredenhagen Industries GmbH go back to 1860. As far back as 1898, the company had its premises in Kornwestheim, where its headquarters are still located today. SFI plans and designs turnkey material flow systems as well as automation and special equipment. Its solutions are mainly planned and implemented for customers in the automotive, heavy duty, bulk cargo and logistics sectors as well as in the aluminium industry. Moreover, the company’s highly qualified staff offers a wide range of additional services such as production assistance, training as well as in-service support and maintenance.