Business News

bielomatik focuses on growth sectors

Tuesday 28. April 2015 - Restructuring under chapter 11 proceedings

bielomatik focuses on the profitable growth sectors plastic welding and lubrication technology. The division paper converting machines shall be now sold acknowledging a difficult market situation.
bielomatik is restructuring itself under chaper 11 protection. The county court of Esslingen agreed to the corresponding filing of the bielomatik management. The approximately 550 employees in Neuffen have already been informed during an employee meeting.
This allows bielomatik to evade an impending insolvency and to continue being lead under the manufacturers own management team. The chapter 11 proceedings have only recently been adopted in German insolvency law. The business activities will be continued unrestricted; the company is still financially solvent.
Simultaneously, standard insolvency filings have been initiated for bielomatik jagenberg, bielomatik’s subsidiary company, that employs 23 members of staff at Neuss/Germany. An employee meeting has been held there as well.
The renowned restructuring expert Arndt Geiwitz of Schneider Geiwitz & Partner accompanies the filings as a trustee. Patrick Wahren has been appointed as the insolvency administrator for bielomatik jagenberg.
“bielomatik is and will continue to do business with its customers and partners under the protective shield of chapter 11”, emphasizes the chairman of management board Alexander Wassermann. “We are able to fulfill all customer orders as planned. Moreover, we can and will pay our orders with suppliers.”
Within the last years bielomatik has developed extensively the plastic welding and lubrication technology businesses. The company has positioned itself profitable and future-oriented regarding the technology, its products and innovation projects. The business is developing in these areas very positively and further growth is expected in 2015. “We also see a great deal of positive potential in the paper converting division that could enable synergies in another commercial context and that brings value to a potential purchaser”, says restructuring expert Arndt Geiwitz. “We will lead intensive sales negotiations”.
Throughout the upcoming three months the company will establish a restructuring plan. If the creditors accept this plan, it will be implemented – in conjunction with a corresponding decision by the court. Wassermann promises an approach in close cooperation with the creditors, business partners, employees, the court and the trustees.
The chapter 11 filing has no effects on the validity of employment contracts. All rights and duties persist. As a result, many employees have a secured salary entitlement for three months due to the so called insolvency substitute benefits during the chapter 11 proceedings.
All foreign subsidiaries of bielomatik in Italy, Romania, the USA, Brazil, China, Singapore and Japan are not affected by these filings.