Germany: PowerWind Files for Insolvency
PowerWind GmbH has filed for the opening of insolvency proceedings under debtor’s self-administration on 24 April 2012. New German insolvency law offers excellent options for sustainable restructuring.
PowerWind GmbH has filed for the opening of insolvency proceedings under debtor´s self-administration [“Insolvenzverfahren in Eigenverwaltung”] with the local court of Hamburg on Tuesday, 24 April 2012.
Important markets of the German wind turbine manufacturer specialized on small to medium-sized Community-scale projects are located in Southern and Eastern Europe. Substantial project delays mainly caused by difficulties within financial institutions in these regions have led to negative impacts on the business. As a consequence, the management has applied on Tuesday for the opening of insolvency proceedings.
PowerWind takes advantage of the new options of the German insolvency law which was reformed through the introduction of the German Act to Further Facilitate the Restructuring of Enterprises [ESUG] on March 1, 2012. The company envisages restructuring under debtor´s self- administration, a proceeding comparable to Chapter 11 in the U.S.
The restructuring is planned to be carried out with assistance of Dr. Sven-Holger Undritz from White & Case Insolvenz GbR, renowned firm specialized in restructuring law, who has been appointed by court as preliminary procurator [“vorläufiger Sachwalter”]. While continuing to manage the operations, PowerWind’s managing directors will receive counseling from the German law firm Wellensiek which is also specialized in corporate restructuring.
Since PowerWind has established an excellent reputation in the market, its management is confident that, together with customers, staff and suppliers, the company can be restructured quickly and in a sustainable way. According to all parties involved, the new insolvency law offers very good options for this.
Offshore WIND staff, April 30, 2012; Image: PowerWind