DECEMBER 20 2012
The local court in Amberg has, upon application by SiC
Processing GmbH on December 18, 2012, ordered debtor-in-possession
proceedings in accordance with section 270b of the German
Insolvency Code (Insolvenzordnung). The Court followed the
proposal of the Company and appointed Dr Hubert Ampferl, partner of
Nuremberg-based law firm Dr Beck & Partner, as preliminary
supervisor (Sachwalter). Dr Ampferl has extensive
experience of financial restructurings.
The management of SiC Processing GmbH, together with the
international law firm Ashurst and the financial restructuring
experts of the Frankfurt-based investment bank Freitag & Co, in
cooperation with the preliminary supervisor now aim for a
restructuring of the Company in self-administration /
debtor-in-possession proceedings.
SiC Processing is the global market leader in the recycling of
slurry from wafer sawing processes for the wafer industry,
including logistic solutions. The Company has struggled
increasingly with the continuous decline in prices and severe
over-capacities in the solar sector. At the beginning of December
2012, the Norwegian subsidiary of SiC Processing GmbH filed for
insolvency following the insolvency of its only customer. The
Company still faces high payment arrears for several customers. In
light of the coupon payment for its €82m bond, which is scheduled
for March 1, 2013, the Company is threatened with inability to
service its debt, pursuant to section 18 para. 2 of the German
Insolvency Code.
Prior to the filing intensive restructuring efforts, such as
moratoriums with individual creditors effective until the end of
February 2013, were implemented and Peter Thysell was appointed as
Managing Director and Chief Restructuring Officer (CRO). Peter
Thysell is optimistic with regard to the protective shield
proceedings: "The protection proceedings offer the necessary
flexibility for a comprehensive and sustainable reorganization of
the Company."
During the protective shield proceedings under
self-administration SiC Processing GmbH remains fully able to
operate. The operations continue unchanged such that customers will
receive their products with the same reliability and high quality
as to date. Accounts receivables resulting from orders going
forward will be settled as usual. Salaries accruing within the next
three months will be covered by the Federal Employment
Office.
SiC Processing GmbH's management will now have up to three
months to present a detailed restructuring plan to the court. This
restructuring plan will then to be reviewed by the court and is to
be approved by the creditors' assembly. Upon approval by the
creditors' assembly, the protective shield proceedings would
terminate and SiC Processing GmbH could continue its operative
business as a fully restructured company.
The preliminary supervisor of SiC Processing GmbH, Dr Hubert
Ampferl, also had a very positive response: "I expect that SiC
Processing GmbH will use the potential of the protective shield
proceedings, recently introduced into the German restructuring
code, to achieve a successful restructuring for the benefit
of its creditors, employees and customers."
N.B. The text in English is a courtesy translation from
German only. In the event of any discrepancies between the two, the
German original text shall prevail.
About SiC Processing GmbH:
SiC Processing GmbH is the leader for recycling of slurry from
water sawing processes of PV and semiconductor industries. The SiC
Processing group has established itself in a timeframe of only
eleven years as global leader for the recycling of slurry. The
production sites are located in Germany, China and the US. In
Italy, SiC Processing runs a sales agency, while the site in Norway
was shut down mid of 2012 following bankruptcy of the Norwegian
customer. To date, the group employs 705 employees. Beside the
majority shareholder Nordic Capital Fund VII, the founder family
has a shareholding of 25 per cent in the Company. You can find more
information at www.sic-processing.com.
Press Contact:
Markus Kreuzer
Head of Marketing and Communications
Telephone: 0049 (0) 9622 - 70 39 273
E-Mail: markus.kreuzer@sic-processing.de