Wismar’s German Pellets’ plant is programmed to start production today. The fuel producer filed for insolvency proceedings on the 10th of February 2016 and was offered a credit to start production, provided that the plant registers no losses.
The Insolvency Administration offered the money for the resumption of production and, as the spokesman for the provisional insolvency administrator Bettina Schmudde, Wolfgang Weber-Thedy advised, they should let the production start as to create interest in potential buyers.
122 potential acquirers have already shown their interest in Wismar’s fuel producer, among which there are both financial investors and industrial companies in the industry. Also, two renowned consulting companies have been chosen to continue the search for investors.
As Weber-Thedy said, the main objective of the German Pellets Group is to sell the company as a whole, but if the sale fails, they will take into consideration the sale of parts of the group.
Since production stopped on the 10th of February, the German Pellets GmbH, has more than EUR 220 million in debts. Also, the US activities have filed for insolvency, while creditor protection was filled.
One of the reasons for which the Wismar’s wood pellet producer got to this situation is the decline of oil costs, which brought the wood pellets price tag way below pressure. In addition, the incomes have lowered due to the weather conditions (the last two years’ warm winters) and the acquisition of Kago, the furnace producer, in 2010, which turned out to be a bad investment.
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