RENA seeks self adminstrations in dealing with insolvency
RENA GmbH plans to continue its ongoing restructuring as part of its insolvency proceedings under self-administration. The management submitted the relevant application to the responsible district court in Villingen-Schwenningen. This step became necessary because the financing solution discussed among the financing partners in recent days unexpectedly fell through due to joint liability issues related to debts of the subsidiary SH+E, which has been insolvent since 19 February. The application filed today only applies to RENA GmbH. The other domestic and foreign subsidiaries of the RENA Group will continue operating as usual. The financing partners and important principal creditors support this step.
"Our core business at RENA has developed positively over recent months. 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," explains RENA founder and shareholder Juergen Gutekunst.
"For the onward restructuring process we are counting on the support of our customers, suppliers and creditors. At the same time, we intend to maintain responsibility for continuing our fundamentally sound business, as we are convinced that this is how we can generate the maximum value for all stakeholders. A self-administration insolvency is a restructuring tool that allows us to do both these things," stresses Gutekunst.
RENA remains fully operational "“ under the supervision of an administrator
A self-administration insolvency enables RENA GmbH to independently restructure the company under the supervision of a court-appointed custodian and on the basis of a future concept agreed with the creditors. The administrator will ensure that the legal regulations are adhered to and will also secure creditors´ interests. During this phase the company is largely protected against enforcements of judgements and coercive measures by the creditors, and it remains fully operational.
Business at RENA GmbH and the other RENA Group companies is therefore continuing as usual. Furthermore, in recent weeks the level of orders received in RENA´s core business of machine building has picked up. So far in 2014 RENA has gained new contracts with a volume of around EUR 22m. Our entire orders in hand currently amount to over EUR 100m. We can also observe further signs of an upswing in the solar market and for applications in medical technology, circuit board and semiconductor production.
The restructuring of RENA GmbH involves placing our focus on our traditional strengths: our range of production equipment for applications in renewable energies/solar power, medical technology and the circuit board and semiconductor industry. The goal remains to successfully complete the restructuring process we have started in the interests of our creditors, customers, suppliers and employees, thus ensuring that the company will remain in operation.
After consulting with the creditors, the owners of RENA GmbH have appointed the restructuring expert Thomas Oberle from the law firm Wellensiek to the management with immediate effect. A lawyer and a specialist in maintaining companies during insolvency, he will support the RENA GmbH with its restructuring. In particular he will be responsible for the self-administration and will significantly manage the development of the future concept, acting as a mediator between the creditors and the company.
In the course of this reorganisation Mr. Eckhard Rau stepped down from his position as CFO due to personal reasons with immediate effect, to accompany the insolvency proceedings at Hager + Elsässer GmbH exclusively and to concentrate on its future and M&A process.
"RENA has always been successful in its core business and has come through the solar market crisis very well in comparison to other companies. We now intend to return to this positive development, picking up where we left off before the acquisition of SH+E. And we are convinced to succeed together with our customers and suppliers," underlines Juergen Gutekunst.
