German Pellets GmbH was rejected a bankruptcy protection plan by the insolvency court in Schwerin in northern Germany. The plan was filed on Wednesday and consisted in a renewable energy project that would help the wood pellets producer to self-manage the bankruptcy process accordingly, as Handelsblatt reported.
The protection plan also included founder Peter Leibold to stay in charge of the company, with the help of a monitoring insolvency administrator. But the court chose a conventional bankruptcy, where Bettina Schmudde was named the insolvency administrator of German Pellets and the one to handle the proceedings.
Many bondholders disapproved the plan because of Peter Leibold’s continued head of the company role. Yet, Frank Günther, a consultant who advised Germen Pellets on the bankruptcy and has been named its interim head, said that the court’s decision went against seven major creditors.
Accoding to Handelsblatt, German Pellets bonds were bought by thousands of investor. Only $546 million came from the US, even if two US production sites may be affected by German Pellets’ insolvency. At the moment, €760 million were invested in the company by different investors.
Marc Gericke, a lawyer for investors from Kanzlei Göddecke, said that there a lot of issues going on behind the company’s bankruptcy, besides the missing liquidity.
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