Feldmuehle fulfils restructuring plan payments early

Richard Stuart-Turner
Wednesday, March 11, 2020

Independent German paper mill Feldmuehle has fulfilled its restructuring plan payments more than a year ahead of schedule.

Feldmuehle is on schedule with its development of new products
Feldmuehle is on schedule with its development of new products

The business successfully completed its restructuring process in December and subsequently exited its insolvency proceedings on 2 January.

In the first two months of 2020 the company said it exceeded its sales targets and that the development of new products, particularly those based on recycling fibres, is on schedule.

Based on the adjusted corporate planning for 2020 and the capital strength of the company through the completed financing, on 1 March Feldmuehle's management decided to make all payments to its creditors, which had been due by 30 June 2021, prematurely and in full.

It subsequently made payments of “several million euros” on 2 March and, with these payments it said it has “completely fulfilled all of the financial obligations from the restructuring plan about 15 months in advance, thereby replacing all third-party rights”.

Feldmuehle had filed for insolvency in November 2018 but, following the implementation of its restructuring plan in the context of self-administration, it said two months later that it would continue on with around half of its previous workforce after discontinuing its production of graphic papers and switching its focus to packaging and label grades.

The company’s paper machine 2, which had been used to produce graphic papers, was subsequently shut down.

This was Feldmuehle's second insolvency procedure during 2018; under its former guise, Feldmuehle Uetersen had initiated insolvency proceedings in January.

It was bought five months later by Feldmuehle GmbH, an acquisition vehicle founded by Kairos Industries, a subsidiary of Berlin-based private equity company Beteiligungsgesellschaft.

Based just west of Hamburg, Feldmuehle has a history stretching back to 1904. It became an independent mill again in 2015, after Stora Enso completed the sale of the business to German private equity fund Perusa Partners.

Now employing around 200 staff, the business serves both German and international markets and produces an annual volume of around 75,000 tonnes.

Separately, in consultation with its financial partners, Feldmuehle said it has prepared for possible influences on the business due to the coronavirus and “will actively use any opportunity to expand the business volume”.

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