DUSSELDORF, GERMANY - Pfleiderer AG, a global maker of wood composite panels, has filed an application for insolvency in hopes of implementing its restructuring plan that was recently rejected by the Higher Regional Court in Frankfurt.
" Uniboard operates financially and organizationally independently from Pfleiderer AG which is just a holding company. We understand that there may be some uncertainty on the part of our employees, customers, suppliers, and other business partners. However, financing for our operating business is in place and the business is expected to continue to run as usual. In particular, our suppliers will continue to be paid promptly in accordance with the agreed upon payment terms and no job losses will result directly from the foregoing."
Pfleiderer filed its application for insolvency a week after the Frankfurt court blocked the company's request for release of lawsuits related to resolutions it had adopted at a meeting of bond creditors last June. Under that restructuring plan, much of Pfleiderer's debt would have been waived and the company would have been recapitalized.
In addition to the capital measures, Pfleiderer had proposed a several operational restructuring measures. Some of these have been implemented, including the operational restructuring of West Europe holdings and the sale of Uniboard's MDF and TFM plants in Moncure, NC, to Arauco. Pfleiderer is also seeking a buyer for the Pergo laminate flooring plant in Garner, NC.
Hans-Joachim Ziems, member of the executive board who is in charge of the Group’s restructuring among his other responsibilities, said, “I regret that we were not able to implement the original restructuring resolutions despite the high level of approval among the parties involved and that therefore, the existing shareholders and bond creditors can no longer participate in the successful restructuring of Pfleiderer. We will now continue with our restructuring by way of an insolvency plan. Pfleiderer is well prepared for this situation. In particular, the so-called debtor in possession approach or self-administration is good news for our employees as it will enable us to complete the restructuring that is already well underway and led to positive operational results without any further delay.”
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