Loewe restructures 'under protection'

The Executive Board and management team have today lodged an application to this effect at Coburg Local Court. "Like the entire industry, the current market weakness for TVs is having a highly detrimental effect on our business", says Chairman of Loewe, Matthias Harsch. "We have therefore decided to drive forward the remaining restructuring of Loewe using creditors’ protection proceedings." All other subsidiaries in Germany and elsewhere will continue to operate as normal and will not be involved in the proceedings. After receiving approval for the proceedings, Loewe will continue to be managed by its Executive Board and can use the wide-ranging opportunities offered by the new “Schutzschirmverfahren” to restructure the company. The business at the Kronach site will continue without any restrictions. The companies' workforce of around 800 people will be informed directly about the state of things and the planned action. Legislators introduced creditors’ protection proceedings last year. These are clearly structured proceedings using which companies can restructure and turn themselves around thoroughly within a few months. Loewe AG and Loewe Opta GmbH are solvent which means that the main requirements for creditors’ protection proceedings in law are satisfied. Corporate responsibility will continue to be in the hands of the company itself ("self-administration"). Creditors’ protection proceedings also offer major benefits to shareholders because their shares retain their value if it is completed successfully. "Our aim is still to restructure Loewe with the help of strategic partners and investors", continues Matthias Harsch. The Executive Board and Supervisory Board of Loewe AG decided on creditors’ protection proceedings because in the current difficulties being experienced by the market and therefore the company, this offers the best way of successfully implementing the restructuring process of Loewe which has already been started in the interests of all stakeholders and thus securing Loewe's future. "Loewe remains fully able to trade even under protection", underlines Rolf Rickmeyer, Restructuring and Financial Director at Loewe AG. "And since we remain solvent, we can complete all customer orders on schedule and also settle our accounts with our suppliers which are accrued during the creditors’ protection period." Main points in the strategic restructuring Under creditors’ protection Loewe will develop a comprehensive restructuring plan together with its creditors. The existing restructuring concept will be drastically extended against the backdrop of increased global competition. At the same time a comprehensive strategic restructuring process will be carried out by means of a radial revision of our value addition and positioning strategy. Another step in the restructuring process will be an increase in share equity to include both existing and new investors. This will further strengthen the equity available to the company.