Next stage for Tadano Demag/Faun
Earlier today Tadano Demag and Tadano Faun submitted their restructuring plan to the Zweibrücken District Court, marking a key stage in the restructuring programme for the two companies - both of which are owned by Japanese crane and aerial lift manufacturer Tadano.
The formal insolvency process for the two businesses is expected to open at the beginning of January, based on the normal protocol for Schutzschirmverfahren (protective shield proceedings), meanwhile the restructuring plans of the two businesses are progressing as planned. See: Tadano seeks formal restructuring
for the original announcement and a fuller explanation of the process.
The companies will continue to be managed independently under the leadership of chief executive Jens Ennen, while Martin Mucha, an experienced restructuring lawyer from the law firm of Grub Brugger, will support the management as general representative. In addition, Arndt Geiwitz, from lawyers SGP Schneider Geiwitz & Partner, will act as the provisional trustee of Tadano Demag and Tadano Faun.
One the official proceedings commence, implementation of the restructuring plan will begin under the regulations of the German Insolvency Code and will include discussions and a ballot meeting with the creditors, which the court is expected to hold in mid to late February. Tadano management expects that if all goes according to plan, the businesses will be able to exit the protective shield process by the end of the first quarter.
The restructuring plan covers all key areas of the two companies, including an ‘organisational realignment’, along with the modernisation and optimisation of the product ranges in order to improve profitability. A large part of the measures is aimed at further coordination between the two locations in Zweibrücken and Lauf, and implementing more efficient processes in order to benefit from potential synergies. The aim is to be able to offer a broader and more complete product range to both Tadano and Demag customers going forward. The company also says that it has a number of new products in the pipeline and ready for launch within the next few months.
While the two German companies will continue to operate under the rules of the protective shield process, production at both facilities will continue as before, with existing and new orders fulfilled. Sales, service, warranty and spare parts deliveries will continue as normal.
Jens Ennen said: “With the completion and submission of the restructuring plan, we have taken an important step in the reorganisation of Tadano Demag and Tadano Faun. I would like to explicitly thank the employee representatives and the creditors' committee for their constructive cooperation, as well as our employees, customers and business partners for their trust. The results and rapid progress we have already been able to achieve in the first weeks of the protective shield proceedings make us very confident about the future and future competitiveness of Tadano Demag and Tadano Faun.”