German plant-based firm Planethic Group has lodged an application for so-called self-administration.
In a stock-exchange filing, Planethic, formerly called Veganz, said the move would help the business “continue the restructuring measures already initiated and to secure the company’s long-term competitiveness”.
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Under German law, self-administration allows a company’s management to retain operational control,while working under the oversight of a court-appointed trustee.
Planethic said its board had decided “continuing the business within insolvency proceedings under self-administration offers the best prospects for a successful restructuring”.
The filing, made on 25 June, read: “Business operations will continue without interruption. Customers, suppliers and business partners can continue to work with the company as usual.”
Just Food has asked Planethic for further details.
The move comes almost a year after the company overhauled the structure of its business.
The then Veganz put its operating divisions into separate subsidiaries and moved to a holding structure.
It remained the majority owner of each of the subsidiaries – Mililk, Happy Cheeze, Peas on Earth and Veganz. Shareholders approved the spin-off in August.
The shake-up was designed to help potential suitors to invest in specific subsidiaries rather than only the entire group and to give the businesses more chance of hitting their growth targets, the company said at the time.
The self-administration proceedings apply exclusively to the parent holding company, Planethic, the company said. “Subsidiaries and equity investments are not affected by the proceedings,” it added.
Employees have been notified of the process, with all wage and salary claims secured under statutory insolvency protections.
The insolvency filing has prompted the cancellation of the upcoming bondholders’ meeting originally scheduled for 21 July. That meeting was intended to address the company’s outstanding €10m ($11.4m) corporate bond, which carries a 7.5% interest rate due between 2020 and 2030.
“Due to the material change in the legal and economic circumstances resulting from the insolvency filing, it is currently not possible to ensure that the proposed resolutions can be considered and resolved upon in an appropriate manner,” the filing read.
