Feldmuehle files for insolvency under self-administration

Feldmuehle GmbH, which in the spring of 2018, took over the business operations of Feldmuehle Uetersen GmbH through acquisition of all substantial assets, has been adversely and unforeseeably affected this current year by unexpected increased energy costs and procurement prices for raw materials. During the current year, management has implemented extensive measures to increase operating profitability. Despite these efforts, the latently rising variable costs could not be offset by implemented price increases, partly due to the company’s lower-than-expected revenues in September and October 2018. Considering these circumstances, the management has decided to carry out the necessary reorganization/restructuring of the company within the framework of insolvency proceedings under its own administration and, on November 19, 2018, filed for an application with the competent local court in Pinneberg to open insolvency proceedings under its own administration pursuant to Sections 270, 270 a para. 1 InsO (German Insolvency Act).