epsotech Restructuring – Scheduled Opening of Proceedings & Confirmed Self-Administration
epsotech's Self-Administration Proceedings Making Good Progress
Jülich, 07th November, 2024 The self-administration proceedings of the operational German companies (epsotech Holding GmbH and epsotech Germany GmbH) of the leading manufacturer of plastic sheets and films are progressing well. “Development and production at the company’s headquarters in Jülich have continued without interruption since the start of the proceedings, and the restructuring measures already initiated are taking effect,” said Predrag Skender, CEO of the German epsotech companies and CEO of the epsotech Group. "That the restructuring of the German companies within the epsotech Group is progressing well is also evidenced by the fact that, as of November 1, we are now in a position to cover employee wages and salaries directly from current business operations." At the end of the month, the proceedings reached another important milestone with the scheduled opening of the proceedings by the Cologne District Court. The self-administration has been confirmed for both epsotech Holding and epsotech Germany GmbH.
Competence Center for Polyolefins and Specialty Plastics
“The feedback we have received from our suppliers and customers since the start of the proceedings shows that they appreciate the high quality of epsotech’s products, support the restructuring efforts, and view us as an important business partner—particularly in light of our focus on polyolefins,” says Skender. “In recent weeks, we have been able to intensify our business activities, especially in the area of polyolefins, and we see this as proof that our decision in Germany to move towards becoming a Competence Center for Polyolefins and Specialty Plastics was the right one in response to the revenue declines of recent years. This step ensures that the production capacities and processes of our German companies, along with the Jülich headquarter and the jobs of our employees there, are prepared for the future and the changing conditions in the plastics industry. We are on the right track and moving in the right direction, but there is still a long way to go before we reach our goal.”
The Most Comprehensive Range of Custom Plastic Sheets and Films in Europe
For many years, the epsotech Group has been developing and manufacturing lightweight, safe, and sustainable plastic sheets at its sites in Germany and across Europe. These products are used in a variety of industries, including automotive, buses and trains, aircraft, ships, and medical devices. With Axipack, a competence center for thin films and rolls, epsotech has also specialized in meeting the demands of the graphic industry, such as in office supplies, promotional communication, and packaging. epsotech offers its customers the most comprehensive range of custom plastic sheets and films available in Europe. The company places a special emphasis on circular economy and CO2 reduction in its innovative products. For instance, the epsoEarth product lines, made with at least 30% recycled plastic, boast a nearly 99% reduced carbon footprint. This focus on sustainability is central to epsotech's commitment to providing environmentally conscious solutions to its clients.
Key Step Toward the Earliest Possible Conclusion of Proceedings
As part of the reorganization, significant improvement in revenue was achieved, primarily due to the already initiated focus on polyolefins. However, ongoing economic challenges in the plastics market have meant that the financial situation of the German epsotech companies has not yet been fully alleviated. Nevertheless, positive development remains the priority. Management is optimistic that this progress can continue in coordination with creditors as the proceedings move forward. The goal remains to promptly conclude the proceedings for the German companies with restructuring plans, which are already underway. “With the scheduled opening of the proceedings, we have taken an important step toward concluding them as soon as possible,” says Skender. The CEO is being advised and supported in the development of the restructuring plans, now in the final stages, by a team from the law firm Heuking, led by Prof. Dr. Georg Streit. In addition, the CEO receives guidance within the framework of self-administration and labor law from a nationwide team at Schultze & Braun, including restructuring experts Detlef Specovius, Michael Böhner, and Alexander von Saenger.
Gratitude to the Workforce for Their Tremendous Commitment
CEO Predrag Skender, along with restructuring experts Detlef Specovius and Michael Böhner, expressed great respect for epsotech's approximately 95 employees: "The workforce has shown tremendous commitment to epsotech and its restructuring efforts. This is by no means a given in such challenging times, and we want to extend our sincere thanks to all the employees. Together, we continue to work towards securing the future of epsotech and the jobs at the Jülich headquarters."
The need for restructuring of the German companies arose primarily due to the challenging market environment in Germany and globally. Across industries, the market has been increasingly impacted by rising interest rates and the growing costs of materials and raw resources. epsotech has been affected by this downturn in several business areas, leading to a significant drop in revenue. Despite these difficulties, the dedication of the workforce is seen as a key factor in the company's recovery and future success.
About epsotech:
For more than 60 years, epsotech has been developing customized plastic solutions for a wide range of segments and markets. Each year, the group supplies more than 2,500 customers worldwide, combining the strengths of 6 European production sites (Macedonia from 2026). epsotech offers the most comprehensive portfolio of extruded sheets and films in Europe - with the goal of 100% recyclability and return to the material cycle.
Self-Administration:
The self-administration procedure allows a company to manage its own restructuring under its own control. The management remains fully operational and can act without restrictions. However, the process is overseen by a court-appointed trustee (Sachwalter). The main goal of self-administration is to enable the company to successfully restructure and restore its financial health while maintaining its operational independence. This approach offers greater flexibility to implement restructuring measures while ensuring protection for creditors and other stakeholders under legal supervision.
Media Contact:
Carina Marotta
Head of Marketing
carina.marotta@epsotech.com
www.epsotech.com
