Hygiene paper manufacturer Hakle restructures itself in self-administration

Planned reorganization of the long-established hygiene paper manufacturer
In the insolvency proceedings, the business operations of the medium-sized company are to be continued in full. "The self-administration offers us the necessary flexibility and speed to sustainably restructure our business and to reposition it entirely in the interests of our employees, customers and creditors. We are confident that this reorganization will succeed in this challenging situation of an energy crisis that can be described as historic, and that we will be able to continue to develop in a future-oriented manner thanks to the tireless efforts of our employees and our strong innovative strength. It's about preserving the site and its jobs," says Volker Jung, Managing Director of Hakle GmbH.

The hygiene paper manufacturer with its traditional brands such as Hakle, Hakle Feucht and Servus faces challenging tasks in the coming months. The first steps were immediately taken to stabilize the company. "We have already comprehensively informed our employees about the current situation and the proceedings at a works meeting and will accompany and support them in the best possible way during this time. As a result, the entire workforce and the Works Council have signaled their express support for the restructuring project. This response gives us the necessary strength and support for the tasks ahead," explains Managing Director Volker Jung.

It is important for our employees that their wages and salaries are secured by the insolvency compensation from the Federal Employment Agency for the months of September up to and including November 2022. Important customers and partners of the company have already signaled their support.

External restructuring expertise on board
The managing director is also supported by the team led by Dr. Matthias Kampshoff from the law firm McDermott Will & Emery and the restructuring experts from AMBG Adiutor Management- und Beratungsgesellschaft mbH. In the insolvency proceedings in self-administration, the management of the hygiene paper manufacturer around Volker Jung will continue to be responsible for the operational business.
The managing director will be assisted by the lawyer and restructuring specialist Dr. Jan-Philipp Hoos from White & Case as provisional administrator. The court has appointed him with the order.

Current energy and material prices drove the company into a corner The tradition-rich company was caught in the maelstrom of current events: The energy-intensive paper industry has been subject to severe distortions in the global raw materials, logistics and energy markets since the start of the Corona 2020 pandemic. For three years now, companies have been struggling with sharply increased challenges - especially in the gas and electricity sectors. This has been the case since around fall 2021, with an intensification of the situation since the start of the war in Ukraine that can be described as historic.

It has not yet been possible to pass on the massively increased costs for material and energy procurement and transport to customers in the food retail and drugstore sectors to a sufficient extent in terms of time and/or economic efficiency.
The decision of the Düsseldorf Local Court in favor of self-administration should positively support the proceedings and shorten their duration in the interests of all employees, customers and creditors.