- Application for debtor-in-possession proceedings now confirmed
- Business continues successfully
- Restructuring experts start process to find an investor
SHW Casting Technologies is allowed to pursue their restructuring measures as part of debtor-in-possession proceedings. The Aalen Local Court confirmed the group’s corresponding application and opened the proceedings on 1 October 2017.
SHW Casting Technologies GmbH & Co. KG Werk Wasseralfingen and SHW Casting Technologies GmbH & Co. KG Werk Königsbronn lodged applications for debtor-in-possession proceedings with Aalen Local Court in July. Since then, the group has been supported by the restructuring firm PLUTA. Mr Marcus Katholing from PLUTA Management GmbH is acting as the chief restructuring officer for the group. Alongside Mr Marcus Katholing, the restructuring team headed by Mr Michael Pluta also includes the attorney and business administration expert Mr Wolfgang Bernhardt as well as the business administration expert Mr Andreas Hummel. The chief restructuring officer Mr Katholing and his team are now starting the process to find an investor. Prof Dr Martin Hörmann from the law firm anchor Rechtsanwälte was confirmed by the court in his function to support the proceedings as the insolvency monitor.
The group’s business operations have continued without restrictions since the application was filed. “We can continue the restructuring process, and we are on the right track. All employees are working with great commitment, and the order books are well filled. These favourable conditions allow us to start the process of finding an investor with confidence,” said the PLUTA expert Mr Katholing.
SHW Casting Technologies was formed from the previous Schwäbische HüttenWerke (“Swabian Smelting Works”), whose origins date back as far as 1365. At the two plants in Wasseralfingen and Königsbronn, SHW Casting Technologies produces engine blocks, papermaking rolls and other castings, as well as components for use in energy generation. A total of more than 330 employees work at the two sites of the group based in the German federal state of Baden-Württemberg.
In addition the proceedings for the two SHW Casting Technologies companies, the court also confirmed debtor-in-possession management for the holding company, CT Beteiligung GmbH & Co. KG, which also belongs to the group, and for Machining Technologies GmbH & Co. KG Werk Königsbronn. The latter company prepares the manufactured castings for further processing.
Information on the proceedings
Debtor-in-possession proceedings are in-court restructuring proceedings to rescue and rehabilitate financially distressed companies. The company is allowed to manage the restructuring process itself, supervised by an insolvency monitor and generally supported by restructuring experts with relevant experience in this field. The preliminary proceedings, that last between 2 and 3 months, are followed by the main proceedings, in the course of which the creditors can file their claims.