Around 99 percent of Tadano Demag/Tadano Faun creditors voted earlier today to accept the company’s plan of reorganisation.
The joint creditors meeting was held at the Festival Hall in Zweibrücken - for space/social distancing reasons - with creditors asked to accept and approve the restructuring plan which includes the discounting of the outstanding balances owed to them by the two companies, following the formal filing for 'protective shield' (Schutzschirmverfahren) proceedings in early January - See: Next stage for Tadano Demag/Faun. Around 70 of the 1,200 or so creditors attended in person, with most voting by proxy. A majority of the total number of creditors were required and they needed to represent a majority of the outstanding claim value in order for the plan to be approved. In the end it was accepted almost unanimously.
The approval gives Tadano management the ‘green light’ to proceed with the plan and restructuring measures - some of which have already been initiated - and emerge from the process at the end of March as scheduled.
Tadano Faun/Demag chief executive Jens Ennen said: “With the creditors’ approval, we now have a clear mandate and the task of continuing to consistently drive forward the company’s reorganisation and implement the operational restructuring measures that have already been partially initiated. We have established the roadmap for the future in these protective shield proceedings, the successful conclusion of the proceedings is imminent, and we will continue quickly and efficiently along the path we have chosen. Tadano Demag and Tadano Faun will continue to be strong and reliable partners for our customers in the future and will offer even better and more innovative products and services.”
Martin Mucha, the insolvency lawyer with Grub Brugger – Stuttgart, who served as chief representative for the company, added: “I am very happy with how the proceedings went. I would like to thank all the parties involved in the process for their goal oriented and constructive collaboration. That was what made it possible, in these unusual times, to really make Tadano Germany’s urgently required restructuring and reorganisation possible. I am absolutely confident that Tadano Demag and Tadano Faun will take full advantage of the chance represented by today’s decision.”
Arndt Geiwitz of accountancy firm SGP Schneider Geiwitz & Partner who serves as trustee said: "The fact that a company of this complexity and size has received creditors’ approval by overwhelming majority for the restructuring plan only 19 weeks after filing for insolvency is the result of the excellent cooperation of all bodies and stakeholders. The customers, the suppliers, the trade credit insurers and the employee representatives have supported this restructuring process in a very positive manner. I am very grateful and confident that Tadano Germany will have a successful future."
There is not much to say that has not been said, but Tadano will be feeling very happy indeed with such a strong acceptance for its plan. Particularly as most of the creditors are regular partners/suppliers that are critical to its ongoing success.
All in all the company appears to have handled the process - so far - in a text book manner.