Herzgut Landmolkerei bankruptcy
Germany’s Herzgut Landmolkerei has been appointed a rehabilitation manager and property administrator after filing for bankruptcy at a district court on 5 November. The main cause of the crisis was the short-term elimination of a central supplier for which no immediate replacement could be found. This was intensified by structural change in the milk industry and a price increase in raw materials and packaging materials.
Gernot John has been appointed for the rehabilitation process in the dairy board and accompanies the operational restructuring of the cooperative. The court confirmed the application and appointed lawyer Bernd Krumbewolz to be the preliminary property administrator. He monitors and accompanies the procedure concerning the creditors.
“We use the modern procedure of insolvency in the administration to redirect the Herzgut Landmolkerei eG from the current crisis or to re-align,” says John.
“The bankruptcy confirmed by the district court is an important tool to sustainably renoval of the traditional dairy in the shortest possible time. This option is only given to companies with a healthy operational core and thus the potential to restore competitiveness. This is an important signal to employees, customers and partners,” says lawyer Stefan Ettelt, who helps the dairy.
The bankruptcy of Herzgut could no longer be avoided, as the cooperative could no longer fully fulfill its payment obligations. Despite the existing challenges, however, all those involved are convinced to find a solution for the dairy.
“We have already taken first hurdles in the current situation: the employees are informed and are available to the company. The business operation continues in full. In addition, the salaries of the workforce are secured by the insolvency money of the Federal Employment Agency for work until the end of the year,” explains Ettelt.
“In the requested application procedure of Herzgut Landmolkerei we are in close contact with the renovation team of the cooperative and the creditors. Together we will to a best possible degree do everything necessary in the interest of all creditors,” Krumbewolz adds.