ae group starts restructuring under self-administration and secures business operations

ae group AG has filed an application with the Meiningen District Court to open insolvency proceedings under self-administration. The reduced demand from the automotive industry has put the manufacturer of aluminium die-cast parts in an economic predicament.

"The business operations of ae group will continue without restrictions as part of the initiated court-supervised restructuring proceedings. Our goal is to keep the company going,’ emphasises Martin Mucha, a lawyer from the law firm GRUB BRUGGER in Stuttgart. The experienced restructuring expert Martin Mucha and his team have joined the company as general agents for the duration of the proceedings and are supporting the management in the restructuring process. The wages and salaries of the approximately 1,000 employees are secured until the end of October through the insolvency money.

ae group was founded in 1980 and most recently generated a turnover of around 150 million euros. The company manufactures aluminium die-cast parts, e.g. gearbox housings, engine components, gearbox control parts and battery housings for the automotive industry. The ae group has four production sites in Gerstungen in Thuringia (headquarters), Nentershausen in Hesse, Lübeck and Strzelce Krajenskie in Poland. The ae group's management board consists of Christian Kleinjung (CEO) and Philipp Bächle (CRO, Chief Restructuring Officer).

Self-administration offers companies a legal framework for reorganising themselves in close consultation with creditors while continuing to operate. Unlike in a regular insolvency procedure, the company's management retains responsibility for the business and controls the restructuring process itself. Insolvency law allows this in cases where companies are able to take action themselves at an early stage in the event of economic problems and there is sufficient scope for a solution. Both of these conditions are met in the case of ae group. In self-administration, the competent district court does not appoint an insolvency administrator, but a so-called trustee. This person monitors the proceedings in the interest of the creditors. Dr Romy Metzger from the law firm SGP Schneider Geiwitz has been appointed as the provisional trustee.

‘We very much regret having to take this step. Although we have already intensified our efforts to restructure our company in recent months, the slump in demand from car manufacturers continues to cause us serious problems. We are confident that the insolvency proceedings will enable us to restructure our company and preserve jobs,’ explains Christian Kleinjung, CEO of ae group AG.

‘The ae group has a strong foundation and its products are of the highest quality. We are therefore aiming to restructure the company and hope that we can find a good solution together with our employees, customers and suppliers,’ adds Martin Mucha, Chief Representative.