German paper mills Feldmuehle Uetersen and Papierfabrik Scheufelen, which both filed for insolvency in January, have updated on their progress with days to go until bankruptcy proceedings kick off at both companies.
Lenningen-based Papierfabrik Scheufelen initiated preliminary insolvency proceedings on 30 January. The company said talks with potential investors are continuing but that production is temporarily suspended as insolvency proceedings get under way from 1st April.
The “vast majority” of its employees, who have had their salaries paid by the Federal Employment Agency’s insolvency allowance for the past two months, have been temporarily released for the time being and will receive unemployment benefits in April.
The preliminary insolvency administrator, Tibor Braun, informed the workforce in March-end at a staff meeting attended by representatives of the labour administration and the trade union, IGBCE.
Feldmuehle Uetersen, based just outside Hamburg said: “According to plan, the business will be reorganised by way of a transfer of business (asset deal) on 1 May 2018.”