Reorganised self-administration for paper mill

„Self-administration offers us the opportunity to realise our own reorganising our financing during ongoing operations“, emphasised Managing Directors Dr Dietrich Arnhold and Krystyna Saworska. „The proceedings will have no impact on our business operations; all of our customers“ orders will be manufactured and delivered as usual." The wages and salaries of around 100 employees will be secured for three months by the Federal Labour Agency. This will provide the company with the necessary liquidity to press ahead with the planned reorganisation.

The long-established Freital-based company has consistently high capacity utilisation, but - like many other energy-intensive companies - is struggling with the sharp rise in energy prices. Above all, however, capital services on old loans are tying up a considerable proportion of income. After negotiations on follow-up financing for an expiring loan agreement failed, the Company decided to take the step into self-administration.

Self-administration offers companies a legal framework to quickly reorganise their financing while business operations continue. The Corporate responsibility in the hands of the management, which controls the restructuring itself. Such a procedure is only open to companies where there is sufficient room for manoeuvre to find a solution. „These conditions have been met at Papierfabrik Hainsberg,“ emphasised the experienced restructuring expert Thomas Mulansky from the Dresden law firm Mulansky + Kollegen, who is supporting the management during the restructuring process together with his colleague Torsten Sommer.

The path the company will take as part of the reorganisation will become clearer in the coming weeks and months. In the The competent local court appoints a trustee for self-administration. Similar to a supervisory board, this monitors the proceedings in the interests of the creditors. The Dresden lawyer Dr Nils Freudenberg from the law firm Tiefenbacher Rechtsanwälte was appointed as provisional administrator.

Source: Papierfabrik Hainsberg GmbH