Feldmuehle files for insolvency

Feldmuehle, a German supplier of papers for labels and packaging, has been affected this year by increased energy costs and procurement prices for raw materials.

Management implemented measures to increase operating profitability. Despite these efforts, the rising variable costs could not be offset by implemented price increases, partly due to the company's lower-than-expected revenues.

Management has decided to carry out necessary reorganization/restructuring of the company within the framework of insolvency proceedings under its own administration. On May 26, the company filed for an application with the competent local court in Pinneberg to open insolvency proceedings under its own administration pursuant to Sections 270, 270 b para. 1 InsO (German Insolvency Act).

Following the management's application, the Pinneberg Local Court ordered the provisional self-administration on May 27. Andreas Romey of Eckert Rechtsanwälte Steuerberater
Partnergesellschaft, Hamburg, was appointed as provisional administrator. The provisional administrator shall examine the economic situation and supervise the management. The company's management retains power of disposition.

Restructuring within the framework of self-administration gives the company's management the opportunity to undertake and respectively implement all necessary measures to improve profitability and thus to take measures toward the company's sustainable competitiveness.

All measures have been initiated to ensure that production can resume at Whitsun.