The insolvency proceedings for Tadano Demag and Tadano Faun are expected to begin in the beginning of January 2021, as the restructuring of the companies progresses.
The restructuring plan was submitted to the Zweibrücken District Court on December 23. Once the protective shield proceedings begin in January, Tadano said it will be able to implement the operational restructuring measures.
Tadano announced the restructuring of its German operations during October, as HLPFI reported here. Filing for protective shield proceedings (Schutzschirmverfahren) is thought to be the most ‘restructuring-friendly’ legal option available in Germany for distressed companies.
The companies will continue to be managed independently under the leadership of ceo Jens Ennen during this phase of protective shield proceedings. Martin Mucha, an expert restructuring lawyer at law firm Grub Brugger, will continue to closely support the management as general representative. In addition, Arndt Geiwitz, another restructuring expert from the law firm SGP Schneider Geiwitz & Partner, will act as (provisional) trustee of Tadano Demag and Tadano Faun.
After the anticipated opening of proceedings in January 2021, implementation of the restructuring plan will begin under the regulations of the German Insolvency Code. Company management currently expects to be able to exit the protective shield proceedings at the end of the first quarter of 2021.
The plan envisages a restructuring of the companies in all key areas. The most important elements are the organisational realignment, the improvement of profitability as well as the modernisation and optimisation of the product portfolio.
A large part of the measures is aimed at further coordination between the two locations in Zweibrücken and Lauf and implementing more efficient processes.
As in previous months, business operations will continue under the prerequisites of the protective shield proceedings. Production at Tadano Demag and at Tadano Faun in Germany will continue, and all existing and new orders will be fulfilled according to the regulations of the the protective shield proceedings.
“A restructuring of the companies was absolutely necessary in view of increasing competitive pressure due to the enormous economic challenges that had been significantly exacerbated by the coronavirus crisis,” said Tadano.
“The aim of the restructuring measures is to position the companies in the future in an economically viable way, to be able to serve the needs of customers even better with products and services, and thus to contribute in the best possible way to the strategic goals of the Tadano Group.”
