The family-owned German manufacturer entered a restructuring process under court protection in August. It was badly impacted by supply chain issues for critical components that left it unable to deliver machines, which crippled cashflow. 

Since then, the situation has improved. 

In an update, Polar said it had won “many new orders” and would start the new year with a good order backlog. It has also been able to deliver finished machines to customers, which has improved liquidity. 

At the end of last month the preliminary creditors' committee of the Polar Group, which includes representatives of customers, suppliers and employees, decided unanimously to extend the preliminary protective shield proceedings until 31 December.

The reorganisation is being overseen by restructuring expert Dr Robert Schiebe from law firm Schiebe & Collegen. 

He said that Polar Group was able to “send positive signs of life to the market”.

“The first restructuring measures have been successfully implemented. Our goal is a sustainable corporate restructuring and the preservation of the businesses.”

Schiebe said that discussions with potential investors included firms from within and outside of the industry. 

Polar Group commercial director Thomas Raab is helming the M&A process. 

Polar said that the potential investors had various ideas about the future for the business and its 50,000sqm facility in Hofheim. 

Final negotiations with the investors are likely to last until early 2023.

Polar was able to pay its employees’ salaries for August and September from its own resources, while the state employment agency involved with the court protection has taken over the three months' salaries until the end of December. Polar has around 380 employees.

As well as guillotines for the printing and packaging industries, Polar is also the dominant supplier of specialist machines for packaging frozen pizzas.

Around 80% of sales are exported, and the firm has a longstanding partnership with Heidelberg.