Sovello unveils redevelopment plan

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In a statement released, Sovello, which announced its application for insolvency yesterday, following bankruptcy rumors at the weekend, has unveiled its plans for a redevelopment concept to its staff at a meeting held today, May 15.

CEO Reiner Beutel said the company will aim to find a suitable investor in the next few weeks. The management also plans to "put all material and labor costs to the test". In the meantime, it will continue on with production "in accordance with current demands".

Beutel further apologized to his workforce for the "reckless reporting" over the weekend, which he said would have unsettled the workforce, customers and suppliers. "For various legal reasons, the management was only able to communicate the news after a ruling by the Dessau district court," he said.

He continued, "The leadership of the company lies in the hands of the management. In close coordination with the interim trustee, all efforts will be focused on a plausible restructuring plan and finding a suitable investor in the coming weeks.

"Wages and salaries are secured by the pre-funded insolvency payments until the end of July 2012, [and] we continue to produce in accordance with current demands. Our goal is to put all material and labor costs to the test, and to discuss the already concrete measures with an interested investor."

Provisional trustee of Sovello, Bernd Depping, went on to assure staff that he would become acquainted with the team as thoroughly as necessary and as quickly as possible, and examine "whether and how the future of Sovello can be sustainable and competitive". He reminded the employees that they were creditors of the company and that he will also "work in their interests".