Sovello hunts for investors

Key to the process will be a commitment on behalf of the potential investor(s) to help Sovello back on the right track, and a quick conclusion to the deal.

KPMG Corporate Finance has been brought on board to aid Sovello’s management in carrying out a "structured" M&A (merger and acquisition) process. Meanwhile, "all efforts will further be closely coordinated with the preliminary trustee, Mr. Depping of dnp Depping, to maintain all options of a turnaround," said the company in a statement released.

According to CEO, Reiner Beutel, interest has already been shown in the company, which employs a workforce of around 1,250, and reportedly reaped revenues of around €200 million in 2011.

"We consider Sovello a highly attractive investment opportunity, based on the String Ribbon technology, its proven technological competence with a stable high quality production process as well as access to attractive markets," added Depping.

Sovello submitted an application to open self-administration insolvency proceedings at the Dessau district court in Germany, due to a lack of funds, on May 14. On May 15, it unveiled a redevelopment concept, aimed at bringing the company back to solvency.