Germany’s RENA GmbH has begun the process of a self-administration insolvency in the wake of continued financial problems experienced by its subsidiary, SH+E.
Insolvency proceedings for the wet chemicals equipment processing specialist will only impact RENA GmbH, with the company assuring investors that other domestic and foreign subsidiaries of the RENA Group would not be impacted by the restructuring.
RENA GmbH is jointly liable for the debts of SH+E, which has been insolvent since February 19, and has enacted self-administration insolvency proceedings to enable the company to independently restructure itself under the supervision of a court-appointed custodian, and under the basis that creditors interests are secured.
"Our core business at RENA has developed positively over recent months," said RENA founder and shareholder, Jürgen Gutekunst. "The fact that SH+E filed for insolvency on 19 February also means we have prevented a further outflow of capital. On this basis, we were confident of completing our restructuring with the support of our financing partners. However, the financing solution ultimately fell through as we could not rule out joint liability for debts of SH+E."
Gutekunst added that the onward restructuring process would require the continued support of RENAs customers, suppliers and creditors, adding that the company will ensure full responsibility for the continuation of a fundamentally sound business approach will be maintained. "A self-administration insolvency is a restructuring tool that allows us to do this," he said.
During the restructuring process, RENA GmbH is protected against all coercive measures and claims from creditors, and can operate as normal. Early indications also suggest that business is slowly picking up after a tough 2013, with the company gaining a handful of new contracts so far in 2014 worth approximately 22 million, with orders in hand amounting to more than 100 million.
The company has appointed restructuring expert Thomas Oberle to oversee the insolvency proceedings, manage the self-administration process and develop the companys future concept.