Tadano Demag and Faun restructuring plan submitted

4 January 2021

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Tadano Demag and Tadano Faun submitted their restructuring plan to the Zweibrücken District Court on December 23, an important milestone in the companies’ restructuring process.

The insolvency proceedings for Tadano Demag and Tadano Faun are expected to open at the beginning of January. “This corresponds to the usual procedure of protective shield proceedings, and accordingly, the restructuring of the companies is progressing as planned,” said Tadano.

The companies will continue to be managed independently under the leadership of CEO Jens Ennen during this second phase of the protective shield proceedings. Martin Mucha, a restructuring lawyer at the Grub Brugger law firm, will continue to closely support the management as general representative. Arndt Geiwitz, another restructuring expert from the law firm SGP Schneider Geiwitz & Partner, will act as (provisional) trustee of Tadano Demag and Tadano Faun.

After the anticipated opening of proceedings, implementation of the restructuring plan will begin under the regulations of the German Insolvency Code. Another important step in the process will be the discussion and ballot meeting with the creditors, which the court is expected to hold in mid/end-February 2021. Company management currently expects to be able to exit the protective shield proceedings at the end of the first quarter of 2021.

The plan envisages a restructuring of the companies in all key areas. The most important elements are the organisational realignment, the improvement of profitability as well as the modernisation and optimisation of the product portfolio. A large part of the measures is aimed at further coordination between the two locations in Zweibrücken and Lauf and implementing more efficient processes.

“The better use of synergies offers great potential for improving competitiveness. In addition, a far broader and more complete range of lifting equipment solutions will be available for the customers in the future, creating greater potential for larger package deals. The customer experience will be enhanced. A number of new products will already be launched within the next few months,” Tadano added.

As in previous months, business operations will continue under the prerequisites of the protective shield proceedings. Production at Tadano Demag and at Tadano Faun in Germany will continue, and all existing and new orders will be fulfilled according to the regulations of the protective shield proceedings. Regular services such as repairs, maintenance, spare parts deliveries and warranty work will continue as normal.

Jens Ennen, CEO of Tadano Demag and Tadano Faun, said: “With the completion and submission of the restructuring plan, we have taken an important step in the reorganization of Tadano Demag and Tadano Faun. I would like to explicitly thank the employee representatives and the creditors' committee for their constructive cooperation, as well as our employees, customers and business partners for their trust. The results and rapid progress we have already been able to achieve in the first weeks of the protective shield proceedings make us very confident about the future and future competitiveness of Tadano Demag and Tadano Faun.”