Dear gas, Germany saves another large importer. First insolvencies among medium-sized companies throttled by price increases – Il Fatto Quotidiano

After Uniper also the Leipzig gas importer Verbundnetzgas (Vng), a subsidiary of EnBWsubmits to the Ministry of Economy an application for state aid “To ward off further damage and ensure capacity for action “. It is the third largest gas importer in Germany and employs around 1,500 people. In 2021 it had a turnover of 18.5 billion. Small and medium-sized enterprises with a long tradition are also affected by the sharp increases in energy, raw material and transport prices and go into controlled administration. This is the toilet paper manufacturer Hakle and the shoe distributor Görtzwhile the dealer of parts for the automotive industry Dr. Schneider filed for insolvency: in total they have 4,700 employees.

The gas importer of East Germany Vngwhich the parent company EnBW defines relevant to the security system of supplies in the country since it supplies 400 municipal companies, has suffered about one billion euros in losses because it had to buy methane at very high market prices after the termination of two supply contracts, one for 35 Terawatt hours from Gazprom Export and a previous one with a national supplier for 65 TWh (since mid-May it is no longer honored).

In recent days, the case of the toilet paper manufacturer has caused a sensation Hakle GmbH, over 200 employees: in 2020 it had achieved a turnover of almost 80 million euros with assets of 650,000 euros. Having requested the opening of the procedure, he will be able to continue the activity, which began in 1928, in parallel with the reorganization. Salaries are insured byFederal Employment Agency until November and important customers and partners have indicated that they want to help the Düsseldorf company.

Also the footwear distributor Ludwig Görtz GmbH has requested the initiation of a receivership procedure together with its two subsidiaries Görtz Retail GmbH and Görtz Logistik GmbH. He motivated it with the developments of the war in Ukraine, high inflation, rising energy prices and the huge drop in purchases. Again the salaries of the approx 2,500 employees of all three companies in the group will be covered by the Federal Employment Agency until November and will be able to continue sales in the approximately 160 branches in Germany and Austria. The Hamburg court has appointed Sven-Holger Undritz of the White & Case firm as a temporary administrator, Sven-Holger Undritz, the management of the company remains operational and his role is only of control. Manager Frank Revermann and Chief Financial Officer Tobias Volgmann expect to submit a recovery plan within three months for court and creditors approval.

Also the automotive component supplier Dr. Schneider based in Kronach in Bavaria filed an application for insolvency. 2,000 employees are affected, not those of foreign subsidiaries in the USA, China, Spain and Poland. The Coburg court has appointed lawyer Joachim Exner of the Beck firm and partner as bankruptcy trustee who told the news agency Dpa to “see good chances of recovery”. A solution that includes an agreement with creditors is likely. Meanwhile, also in this case the Federal Employment Agency ensures the salaries for the next three months and the activity can proceed.

For Patrick-Ludwig Hantzch, director and spokesperson of the economic research center Creditreforminterviewed by ARD, indeed there is a tail of failures from the pandemic. State aid has insolvency artificially avoided of many companies that now in an economic environment troubled by high inflation, high energy prices, rising interests, lack of collaborators, interrupted supply networks, are unable to do so. However, the government plans to introduce more generous bankruptcy rules for fundamentally healthy companies that could survive under different conditions. Companies that are already suffering from price increases, however, may find it difficult to make it through the winter.

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Dear gas, Germany saves another large importer. First insolvencies among medium-sized companies throttled by price increases – Il Fatto Quotidiano

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