© saniphoto Business | May 14, 2018

Litarion GmbH has to stop business operations

The battery component manufacturer Litarion ceases business operations. No agreement could be reached in negotiations between the property owner and two possible investors about the continued use of the property.
Without the prospect of an investor solution, a continued business operation is not possible under German insolvency regulations.

Litarion had filed for bankruptcy in January, after the lease on the company property was terminated by the owner (Li-Tec, part of the Daimler Group) due to significant rent arrears.

Appointed insolvency administrator RĂĽdiger Wienberg has continued to work towards an investor solution in recent weeks and months, in order to nevertheless provide the company with a perspective. As a result, two strategic investors submitted concrete purchase offers.

The condition for the realisation of any investor solution, however, is an agreement between the investors and Daimler on the continued use of the property.

Daimler has now informed RĂĽdiger Wienberg that the negotiations on a follow-up lease with the investors have also failed, a press release states. The insolvency administrator has already informed the works council of Litarion and the remaining 120 employees will receive their dismissals over the next few days.

"For the employees, who had continued to hope, this decision comes as a bitter disappointment," said Wienberg. "However, the insolvency law leaves no room for maneuver here."
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January 17 2019 2:20 pm V11.11.0-2