The imbalance has arisen because, according to the company, "in recent years of successive crises, it has not been possible to implement all cost increases beyond materials and energy at the right level and without any significant delay."
The two foundries (subsidiaries of JORA Holding), which together employ around 1,400 people and generate annual revenues of around 300 million euros, will be working on detailed restructuring plans over the next three months. These will be developed in close consultation with stakeholders and consultants and are aimed at stabilising and continuing the business activities in the long term. Nicole Jedrol and Sebastian Braun, experts in insolvency law at RKGB Rechtsanwälte, are supporting the companies in the protective shield proceedings as authorised restructuring representatives.
"Strategic opportunity"
"Utilising the protective shield procedure offers a strategic opportunity to strengthen the market position of both companies and overcome the challenges of recent years," explains Sebastian Braun, Partner at RKGB Rechtsanwälte. The companies are being supported by AMBG (Adiutor Management- und Beratungsgesellschaft mbH), which specialises in restructuring and reorganisation proceedings.
During the proceedings, entrepreneurial responsibility will remain in the hands of the respective management teams of Franken Guss - exhibitor at EUROGUSS 2024 - and Sachsenguss. Rüdiger Weiß from the restructuring law firm WallnerWeiß has been appointed as provisional administrator to oversee the reorganisation in the interests of the creditors.
Restructuring measures assessed as viable
The reorganisation measures were checked in advance by independent auditors and assessed as viable, which was confirmed by the court. The business operations of both companies will continue in full throughout the entire process in order to provide all services unchanged and thus ensure the stability of the company.
