27.03.2012

SIAG: Initial positive feedback from banks, customers and suppliers

Dernbach / Frankfurt am Main, 27 March 2012 – The five subsidiaries of the SIAG Group currently undergoing preliminary insolvency proceedings received initial positive feedback from banks, customers and suppliers. Dr. Jan Markus Plathner, representative of the law firm BRINKMANN & PARTNER and preliminary insolvency administrator as appointed by the District Court of Montabaur, made an initial assessment of the situation after holding first talks. “It is the goal of all participants to maintain the production sites as well as the company group as far as possible. We are commonly working on a constructive solution and are making considerable progress every day.”

Since SIAG filed for insolvency on 19 March, the experienced restructuring expert and his team have been trying to restore the material flow and resources necessary for production. Current production at the Leipzig facility has been ramped down, and production will resume at the facility in Finsterwalde shortly.

Long-term financing solution for Nordseewerke in progress
Production at SIAG Nordseewerke, which is not affected by the insolvency, is running as usual. According to Dr. Plathner, “We are in preliminary talks with Nord-LB to enable a long-term preservation of Nordseewerke.” Collaboration is also taking place on the search for investors. The local government of Lower Saxony has also offered its support. The ultimate goal is to establish a strategy which, on the one hand, enables a continuation of the production process, and on the other hand, takes the creditors’ interests within the framework of the insolvency proceeding into account.
 
The five SIAG subsidiaries which filed for insolvency on 19 March 2012 employ approximately 440 employees. The pre-financing of insolvency funds for the employees has been initiated. “We expect the employees to receive their first payments within the next two weeks,” Dr. Plathner emphasized. The SIAG Group as a whole employs over 1,800 individuals. The group’s foreign subsidiaries are not affected by the insolvency proceeding.