Creditors of circular knitting machine builder, Mayer & Cie. GmbH & Co. KG in Albstadt-Tailfingen,have approved of the insolvency plan submitted by Insolvency Administrator Wolfgang Bilgery, as banks under the leadership of Deutsche Bank are said to be ready to provide the company with the funds required for the continuation of the business operations.

720 creditors with claims amounting to Euros 82,497, 893.76 were represented during the creditors’ meeting last Thursday at the local district court in Hechingen. Among the creditors, 709 with claims amounting to Euros 82,282,996.00 are said to have agreed to the plan. This corresponds to an approval by head count and by claim sum of 99 %, and the insolvency plan was therefore accepted.

A statement to the press yesterday, stated: “Insolvency Administrator Wolfgang Bilgery expressed himself on Thursday afternoon in front of the staff about the result of the voting. It proved true that the insolvency plan was balanced and the burden of the reorganization was apportioned on the shoulders of all parties involved.”

 The insolvency plan provides for the creditor banks to waive approximately 10 million Euros and pension obligations amounting to just under 7.9 million Euros will be taken over by the Pension Insurance Corporation (PSV). The remaining creditors of the Mayer & Cie. GmbH & Co. KG will receive a quota of 8.5 % on their claims.

The statement said that: “The partners of Mayer & Cie. GmbH & Co. KG are investing a further 2 million Euros in the business and the banks contributed significantly to the recapitalization of the company. The Deutsche Bank, the Baden-Württembergische Bank and the Commerzbank have formed a pool under the leadership of the Deutsche Bank and are ready to provide Mayer & Cie. the funds required for the continuation of the business operations.”

Bilgery also emphasized the contribution of the staff and IG Metall (the trade union for the metal working industry). “The conclusions of a company agreement which provides for the waiver of vacation and Christmas bonus as well as up to five hours of non-paid extra work per week contributed considerably to the fact that Mayer & Cie. was operating profitably again since February this year, Bilgery said.

Also said to be important for the positive development of the insolvency proceedings was the loyalty of both customers and agents. With the termination of the insolvency proceedings, which the Insolvency Administrator expects to be latest end of October, the function of the Insolvency Administrator ends and the administrative powers and the power of disposal is transferred back to the management.

On completion of the insolvency proceedings the management will be strengthened by an experienced expert in restructuring. Besides co-partner Rainer Mayer, who will return from the Advisory Board of the company to the management, a further CEO will be appointed in graduate engineer Josef Kleebinder. Kleebinder has acted in various restructuring cases already, among others at sewing machine manufacturer Pfaff in Kaiserslautern. Co-partner Marcus Mayer will remain in the management as authorized officer and former CEO, Karl-Heinz Dommes, will further act as an adviser to management.