Kelheim Fibers GmbH has applied for protective shield proceedings (bankruptcy protection) at the Regensburg District Court in Germany. The court ruling followed the application and thus paved the way for further implementation of the plan renovation course.
 
The company had already developed a restructuring plan with its financiers in June and its home city Kelheim also made a significant contribution with the acquisition of the VfL property from Kelheim Fibers GmbH.
 
Despite these measures, the economic situation worsened, primarily due to a massive price decline as Asian suppliers significantly reduced prices for viscose fibers, making it impossible for Kelheim Fibers to be profitable in the long term
 
Amidst these conditions, demand for specialty fibers from Kelheim Fibers remains high and management is in close contact with customers to ensure continued delivery of goods. Craig Barker remains in the role of managing director supported by CRO Frank Reinhardt and the law firms Advant Beiten, Brinkmann and Partner and FTI Andersch as well as supervised by Michael Verken from the Anchor law firm, who was appointed by the court as provisional administrator.
 
“We have done everything we can in recent months to avoid this step. Now the focus is on finding a sustainable solution and ensuring the continued existence of the company. Our supreme priority is to find the best possible solutions for our employees, customers and partners,” says Barker. “We continue to be convinced that our products are in high demand in the market and are doing everything in their power to ensure business operations even in these difficult times phase to continue in a stable manner.”