Heuking Kühn Lüer Wojtek advises and accompanies EAE Group on implementing protective shield proceedings
EAE Group, a leading supplier of controls, automation solutions, and software for newspaper printers, continues its restructuring as part of protective shield proceedings. On September 2, 2013, Reinbek Local Court approved the petitions of the three companies EAE Ewert Holding GmbH (Ahrensburg), EAE Ewert Ahrensburg Electronic GmbH (Ahrensburg) and EAE Ewert Automation Electronic GmbH (Coswig/Ahrensburg) for protective shield proceedings. Business operations are continuing without restrictions at all locations.
A team of Heuking Kühn Lüer Wojtek led by Hamburg-based partner Dr. Johan Schneider had advised management and supported it in filing petitions for the new reorganization instrument introduced with the insolvency law reform on March 1, 2012. The reorganization experts will also advise and accompany EAE Group's management, which will maintain control of the group companies during the proceedings, during the operational implementation of the restructuring in the proceedings.
This includes the team led by Dr. Schneider drafting an insolvency plan in the coming three months together with Managing Director Werner Ringel, an experienced reorganization managing director, and with Peter Alexander Borchardt of the law firm of Reimer Rechtsanwälte, the provisional trustee appointed by the Local Court. "On the basis of the existing reorganization concept, we want to successfully continue the reorganization path that has been implemented since several years already," Dr. Schneider explained. "It is our objective, jointly with management and the trustee, with whom we have collaborated well in other proceedings to maintain EAE Group and keep as many jobs as possible."
One of the relevant factors for this is a new investor for EAE Group, which at the corporate headquarters in Ahrensburg (near Hamburg) and at other locations employs a staff of about 270. "Our objective is the sale of the entire group as profitable and forward-looking enterprise," said Managing Director Werner Ringel. "I am confident that we will succeed in doing so via the protective shield proceedings." The sale process, started by management, could not be successfully concluded under the past conditions.
"The protective shield proceedings allow us to use the possibilities of insolvency law, in order to find an investor, who most closely achieves the objective - maintaining the company and keeping as many jobs as possible," said Dr. Duhnkrack, Hamburg-based Partner at Heuking Kühn Lüer Wojtek. For this purpose, the Heuking Kühn Lüer Wojtek team will accompany an international investor procedure. The ongoing discussions with potential investors and strategic partners will be continued.
Additional information on EAE Group:
The enterprises of EAE Group offer products for the printing industry, for switchgear technology, automatic control engineering, and stage technology. Group revenue in fiscal 2012/13, ending on April 30, 2013, was about EUR 40 million. The company established by Richard Ewert in 1962 employs a staff of about 270 in Ahrensburg (near Hamburg), Coswig (near Dresden), and Atlanta/Georgia (USA). EAE is the leading supplier of controls, automation solutions, and software for newspaper printers. Its solutions are being used in all areas of a printing plant - from pre-press to shipping. Worldwide, more than 550 printers are using EAE's controls - producing more than 125 million newspapers per day.
Additional information on the company is available at: www.eae.com
Counsel to EAE Group:
Heuking Kühn Lüer Wojtek, Hamburg
Dr. Johan Schneider (Lead, Insolvency Law/Reorganization)
Dr. Stefan Duhnkrack (M&A/Corporate)
David Loszynski (Insolvency law/Reorganization)
