Automotive Supplier Küpper Metallverarbeitung Must Shut Down its Plant
After the last potential investor had also withdrawn his interest, Küpper Metallverarbeitung Heiligenhaus is on the verge of collapse. Around 200 employees will lose their jobs.
The insolvent automotive supplier Küpper Metallverarbeitung Heiligenhaus has to quit its business. After the last potential investor also withdrew his interest, it is no longer possible to sustain the company and to continue business operations in the long term. None of the interested parties were willing to get involved with Küpper Heilgenhaus. Accordingly, the insolvency administrator is forced to discontinue the business operations at short notice and to initiate the shutdown of the company on 30 June 2019.
The lawyer Jens Schmidt from Runkel Schneider Weber regrets the rejection of all potential buyers. Even if an investor did not take over any old debts through a transferring restructuring the risk of current losses would remain. A clear order extension could compensate the high current monthly losses of approximately 750,000 euro. Such necessary increases in orders are, however, not realistic in a difficult market environment and in the current discussion about diesel exhaust emissions, summarises restructuring expert Schmidt.
Difficult Market Environment
In addition, clients themselves have problems in a slowing market and are therefore reluctant to place orders. Other clients, on the other hand, such as the sister company Küpper Metallverarbeitung Velbert, have had to file for bankruptcy themselves. In the past, Küpper Heiligenhaus's largest customer had always confessed to the company and remained loyal to it. However, the order volumes were not sufficient to compensate for the monthly losses. Without the commitment of this major customer, Küpper Heiligenhaus would probably not have survived a first insolvency in 2017. It is assumed that it is no longer possible to restructure the company.
The insolvency administrator has no alternative due to the Insolvency Act: He must protect the assets involved in the insolvency proceedings in the interests of the creditors. Since a loss assumption by the customers exists only up to 30 June 2019 and an extension is made dependent on the investor entrance, the closure of the traditional enterprise threatens at the end of June. In the meantime, discussions are taking place between the insolvency administrator and the works council on a reconciliation of interests and a social plan.
This article was first published by Automobil Industrie.
Original: Jens Scheiner / Translation: Isabell Page