Elumatec of Germany Declared Insolvent; Subsidiaries Doing “Better than Expected”September 24th, 2013 by Editor
Elumatec is seeking insolvency protection from creditors, but the German-based company says business remains strong, including at Elumatec North America.
“Business is going strong to the point that we are able to finance activities in our own home market and at our foreign subsidiaries by our means,” says managing director Britta Hubner.
According to the announcement, Hubner and preliminary insolvency administrator Tobias Hoefer recently met with employees at company headquarters in Lomersheim, Germany to tell them they would again be receiving their regular wages and salaries as of October 1. All employment contracts were to remain in force, according to the release.
Company officials cited a failing economy and the holiday period as among the factors for the cash-flow problems that forced the company to initiate insolvency proceedings in late July. They looked to assure company employees, telling them that no work orders have been lost.
Hubner reported that corporate subsidiaries and branches abroad were doing “better than expected.” Without filing their own restructuring or insolvency petitions, the companies were able to finance and continue their operations independent of the parent company, the release said.
Formal insolvency proceedings for Elumatec begin on October 1.
“This step is necessary from both a legal and objective aspect to ensure swift and efficient implementation of the restructuring process in the interest of all involved,” Hubner says.
Elumatec is an 85-year-old family-owned company that boasts subsidiaries and agencies in more than 40 countries and employs 720 staff worldwide, according to the company website.