Debt settlement plan unanimously adopted by creditors’ meeting
By decision of 9 October 2020, the “debt settlement plan” submitted by Baden Board GmbH is accepted by the local court in Baden-Baden. This clears the way for the release from the protective shield procedure.
At the end of November 2019, Baden Board GmbH had voluntarily entered into insolvency proceedings under its own administration (protective shield proceedings) at its own discretion in order to free itself from the high level of debts shown in the balance sheet which the company had built up in the past. This stood in the way of raising funds for urgently needed investments and, in the opinion of the management, would have led to the inevitable end of the traditional company in the foreseeable future.
With the debt settlement plan now unanimous accepted by the creditors, the balance sheet will be relieved of approximately EUR 27 million in liabilities, thus achieving a “balance sheet structure that is typical for the industry, which does not already fail to attract financing and access to investment funds because of the fundamental business management ratios,” says Stefan Böll, CFO of the company. This new basis for the company has been hard-won and involves a painful waiver of claims for all creditors. “I would like to thank all creditors for agreeing to these cuts, especially, but not least, our employees, who are contributing to this relief by waiving their salaries and increasing their weekly working hours, among other things,” adds Robert Ferstl, Managing Partner of the Baden Board. In return, he gives the employees a share in the company and provides essential security for the financing of further planned investments.
Originally, the completion of the proceedings was planned for the end of Q2/2020. However, the corona crisis with its associated restrictions and complications has led to delays here. Nevertheless, the business operations of Baden Board GmbH have continued unchanged and uninterrupted at a high level for the duration of the proceedings. It was also possible to make initial investments in the stability and quality of the production facilities during this phase. “As a result, we already have significantly less loss of productivity and are working more efficiently than a year ago,” says Robert Ferstl, “We want to and must continue along this path consistently and invest in the future viability of systems, technologies and products in order to establish Baden Board as a sustainable producer of recycled cardboard and recycled packaging. The prospects of success for this are now given with the completion of the process”.