Menold Bezler and Schleich & Kollegen oversee the restructuring of the media group with sites in Sindelfingen, Korntal-Münchingen, Nurnberg and Ettlingen – Stuttgart District Court appoints lawyer Martin Mucha as provisional trustee
Stuttgart, August 3, 2018
Sindelfingen-based Heer Media Group has applied for the initiation of self-administration proceedings. The corporate group comprises Heer Medienholding GmbH, Körner Druck GmbH & Co. KG, WPM Druck GmbH, Walter Digital GmbH as well as Kraft Premium GmbH, among others. With a consolidated turnover of Euro 120 million, around 550 employees, six web offset presses, three sheetfed offset presses, as well as a diverse range of digital printing services and extensive print processing, the Heer Group is one of Germany’s leading manufacturers of catalogues, brochures, directory media and advertising inserts.
The restructuring proceedings were triggered inter alia by a significant, unplanned decrease in turnover in May, June and July 2018, as well as increasing costs of up to 20 per cent for energy and paper – costs that it was not possible to pass on to the customers. The reasons for the decline in sales have not yet been conclusively analysed. “The need for capital to cover the liquidity shortfall caused by these circumstances was so great that the shareholders were no longer able to stand behind it. Based on a reasonable and sustainable restructuring concept, however, the shareholders are now willing to continue their commitment”, says Tino Heer.
Together with Dr. Thorsten Schleich of the firm Schleich & Kollegen based in Villingen-Schwenningen, Jochen Sedlitz, experienced restructuring specialist and insolvency administrator at law firm Menold Bezler in Stuttgart, is overseeing the restructuring of the corporate group.
Sedlitz: “Our prime immediate task is to pay employee wages by means of what is known as pre-financing of insolvency benefit payments. At the same time, we will ensure that the group is supplied with the necessary raw materials and services.” According to the restructuring specialist, there is already a shareholder concept for the sustainable, long-term continuation of the corporate group. This plan will now be reviewed and implemented if appropriate. “However, we will also be looking for investors to become involved in or acquire the group. We are looking to find the best possible solution in the interests of both the employees and the creditors”, said Sedlitz.
According to Dr. Thorsten Schleich, there are now two months to permit an examination of the facts and thoroughly examine the restructuring concept. It will then be time to implement proposals. It is hoped that the group can be “released” again from insolvency proceedings by the end of the year at the latest.
In accordance with the new provisions on group insolvency law, the competent district court in Stuttgart ordered a group procedure for provisional self-administration and appointed Martin Mucha of the firm Grub Brugger & Partner in Stuttgart as the provisional trustee. Mucha is highly experienced in performing trustee functions and has already overseen the successful implementation of numerous insolvency plans.
Advisors to Heer Media Group: Menold Bezler (Stuttgart):
Jochen Sedlitz (Partner, Insolvency Administration), Dr. Jasmin Urlaub (Partner, Insolvency Law), Dr. Sebastian Mielke (Associate, Insolvency Management), Pascal Mangold (Associate, Insolvency Management)
Schleich & Kollegen (Villingen-Schwenningen): Dr. Thorsten Schleich (Insolvency Management), Florian Götz (Insolvency Management), Dr. Ingo Reinke (Insolvency Law)
Grub Brugger (Stuttgart): Martin Mucha (Trust Administration)
Sectors and Solutions: Reorganisation and Restructuring