German Pellets Group is split with opening of insolvency proceedings

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WT/Fordaq
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On May 1 the insolvency proceedings on the bankrupt German Pellets Group have been opened. Insolvency administrator is Bettina Schmudde from White & Case, Hamburg.

At the same day Bettina Schmudde has closed contracts with investors that shall guarantee the continuation of parts of the German Pellets Group. The German Pellets mill in Wismar has been acquired by Metropolitan Equity Partners, LLC, New York (MEP). MEP is a financial investor with experience in the development of companies. The Wismar mill operates now as the new founded company Wismar Pellets GmbH.

The German Pellets mills in Ettenheim und Herbrechtingen in Germany’s southwest are taken over by J. Rettenmaier & Söhne GmbH + Co KG (JRS), a German producer of fibres for chemical and industrial purposes. JRS has mills in Europe, America and Asia and 2 000 staff worldwide.

Until the contracts come into effect operations are continued by the insolvency administrator on an interim basis. Negotiation for the fourth German Pellets mill in Germany are still going on. Bettina Schmudde wants to reach an agreement with one of several interested parties by end of May.

Furthermore the German Pellets mills in Texas and Louisiana are undergoing Chapter 11 insolvency proceedings. An expert team is working together with lawyers of US-investors on solutions to restructure and continue the companies. USD 550 million have been invested into the US-companies of German Pellets.

The negotiations on the acquisition of the coal-fired powerplant Langerlo in Belgium by a new investor are continued under inclusion of the Belgian government.

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