Insolvency Difficult Market Environment Demands Repositioning at Heck & Becker
The German automotive supplier Heck & Becker GmbH & Co. KG applied for a self-administration procedure at the district court in Marburg in order to reposition itself and its business operations. This measure was reinforced by the ongoing tense situation in the entire automotive industry, which has deteriorated drastically once again due to the COVID-19 crisis.
For thirty years, the mold maker has concentrated exclusively on the production of sophisticated die casting molds and has thus been involved in the development of forward-looking technologies in the automotive industry. The company currently has a workforce of around 180 and operates today one of the world's largest and most modern integrated die casting technology centers.
The application for self-management was triggered by the current uncertainty in the automotive industry and the resulting decline in orders due to the accelerated move towards electromobility. The diesel crisis, which was further exacerbated by the economic impact of the Corona pandemic, also contributed to the decision. It is generally expected that overcapacities, weak demand and the general changes in the entire automotive industry will leave deep scars on many suppliers. In the opinion of Managing Director Martin Baumann, only those who proactively face and adapt to change will have a perspective in an increasingly competitive environment.
The experienced restructuring expert Dr. Gordon Geiser from the law firm GT Restructuring in Berlin, who has already successfully restructured numerous companies, was won over for the process. He is confident that the measures introduced will quickly free the company from the crisis situation. According to Dr. Geiser, business operations will continue unrestrictedly even during the self-administration. This includes the pre-financing of the insolvency money already applied for in order to secure the salaries of the employees.
The district court of Marburg has appointed Julia Kappel-Gnirs from the law firm hww hermann wienberg wilhelm as provisional administrator.