GÖRG partners Prof. Dr. Gerrit Hölzle and Dr. Thorsten Bieg accompany the reorganisation of KSM Castings Group GmbH using protective shield proceedings
The automotive industry in Germany is one of the industries hardest hit by the consequences of the Corona pandemic. As a result of the crisis, KSM Castings Group GmbH, based in Hildesheim and at three other German locations, has also decided to continue its restructuring course as part of a request submitted to the competent Hildesheim district court on July 2, 2020 for the initiation of protective shield proceedings. The protective shield procedure is intended to give KSM the opportunity to bring the restructuring measures already initiated to a successful conclusion and to reposition itself under the changed market conditions. The shareholder has clearly committed itself to KSM and supports the procedure.
The management of KSM has been complemented by the reorganisation and restructuring experts Prof. Dr. Gerrit Hölzle and Dr. Thorsten Bieg, both GÖRG partners with many years of experience, especially in the support of large self-administration proceedings. The GÖRG team will now develop a restructuring plan together with the operational management of KSM and with the support of the shareholder. KSM's performance towards its clients should not be affected by the decision to complete the restructuring under judicial supervision.
The application for the initiation of protective shield proceedings will generally only be granted by the competent local court if there is a prospect of the company being restructured and it is solvent. The Hildesheim Local Court considered these conditions to be met. It has appointed attorney Dr. Rainer Eckert as provisional trustee, who will cooperate constructively with the debtor-in-possession management and work out solutions together with the GÖRG team to enable another company in the automotive industry in Germany to find a way out of the unavoidable consequences of the Corona pandemic.
Debtor-in-possessions management KSM Castings Group GmbH
GÖRG Insolvenzverwaltung Partnerschaft von Rechtsanwälten mbB
Prof. Dr. habil. Gerrit Hölzle, Partner, Restructuring & Insolvency Administration, Hannover/Bremen
Dr. Thorsten Bieg, Partner, Restructuring & Insolvency Administration, Hamburg
Stefan Liese, Partner, Insolvency Administration, Hannover
Tim Beyer, Partner, Insolvency Administration, Bremen
About KSM Castings Group GmbH
KSM Castings Group GmbH is a producer of light metal castings for the automotive industry. The KSM Castings Group is represented at nine locations worldwide and employs around 3,550 people. However, only the German subsidiary with around 1,800 employees at four locations is affected by the protective shield proceedings.