AEG Power Solutions’ insolvency plan unanimously approved

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The German power supply and control products manufacturer AEG Power Solutions announced that its insolvency plan under the so-called protective shield proceedings (Schutzschirmverfahren) has been unanimously approved and accepted by the District Court of Arnsberg, Germany.

International law firm Denton reported on Friday that all the company’s creditors have approved the plan without any dissenting votes or abstentions. Denton said that the approval of the plan was the main hurdle for its survival and reorganization. Once the plan is legally valid, Denton added, the related insolvency proceedings will be closed.

The plan establishes that all creditors will have to provide substantial restructuring contributions. Furthermore, the plan includes corporate measures, which will reduce the share capital to zero. As a result, the current stakeholder will withdraw from the company. Through a new capital increase, the new shares will be transferred to AEG Power Solutions B.V., which is another subsidiary of AEG Power Solutions’ parent company 3W Power.

The company filed for insolvency under protective shield proceedings in November 2016. The court named Rainer Eckert as trustee administrator. The court of Arnsberg opened the insolvency proceedings involving the company's assets in February. Andreas Ziegenhagen and Dirk Schoene from Denton were awarded general power of attorney (Generalhandelsvollmacht) for the restructuring process. They are now responsible for negotiation and implementation of personnel actions, restructuring of debt capital measures, as well as for takeover agreement with the new owner and the draft of the insolvency plan.

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