Yesterday (16 December), Feldmuehle’s creditors unanimously approved the insolvency plan submitted by the company as part of a voting appointment at the district court in Pinneberg, which ensures the continuation of the company.
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.
In a statement issued today, the business said: “In the ongoing restructuring process, the company has latently implemented cost adjustments and improvements in effectiveness and already achieved operating profitability in summer 2019.
“In addition, various investments were made to increase energy efficiency, sustainability of all operational processes and environmental balance.
“By adopting the plan, the recently strengthened company in sales has created the basis for sustainable competitiveness.
“We thank our business partners for their trust and guarantee that Feldmuehle will continue to be a reliable and innovative business partner.”
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.
In September the business increased the performance of its paper machine 1 (PM1) by up to 7% for various grades “to meet the increasing demand of customers”.
