The reorganization procedure for Hamburger Berufsförderungswerk (BFW) under the new "Act on further facilitating the reorganization of enterprises" commenced in May 2013 with the obtaining of protective covers under insolvency law is on the verge of a successful conclusion. The creditors unanimously approved the reorganization insolvency plan on November 8, 2013. A team led by Dr. Johan Schneider, partner at commercial law firm Heuking Kühn Lüer Wojtek's Hamburg office, drafted the insolvency plan in collaboration with BFW's general proxy, Stefan Denkhaus of BRL Boege Rohde Luebbehuesen and the trustee Peter Alexander Borchardt of Reimer Rechtsanwälte in the three months since the application for protective cover proceedings had been filed.
"In this case, we faced a difficult financial reorganization and particularly with the necessary sales of real estate and properties as well as the financial contributions of the mortgage creditors were able to pave the way for a successful reorganization of BFW," Schneider was pleased to note. The now accepted insolvency plan provides for an insolvency ratio of 37 percent for the unsecured creditors.
In addition to the successful filing for the protective cover proceeding under self-administration and the drafting of the insolvency plan, Heuking Kühn Lüer Wojtek's team also supported management and BRL in the extensive negotiations with the works council on the necessary reduction of personnel. In parallel, negotiations were held with the Free and Hanseatic City of Hamburg - the sole shareholder of BFW - on the additional equipment of a transfer company, which were also brought to a successful conclusion. Altogether, this allowed for the saving of 154 jobs in the company, while 87 employees changed to the transfer company.
The judicial confirmation of the insolvency plan already took place. The rescission of the plan proceeding is expected to take place on December 1, 2013 and thus close to six months after the protective cover filing. "The new procedure worked here very well, because in particular the co-operation of all parties involved ones worked very well," Schneider said.
Hamburger Berufsförderungswerk GmbH was established in 1962 and considers itself a modern, value-oriented enterprise in the social area. The company has as its objective the opening of new perspectives in the work and occupation fields for health-impaired adults. This is to occur through training, qualification and by means of information, advice, diagnostics and placement of the persons looking for work.
Hamburg BFW is financed by Deutsche Rentenversicherung Bund, Deutsche Rentenversicherung Nord, the statutory accident insurance companies (DGUV) and the Federal Agency for Work, which all are also creditors. Moreover, additional public creditors are involved.
Counsel to Hamburger Berufsförderungswerke GmbH:
Heuking Kühn Lüer Wojtek, Hamburg:
Johan Schneider (Lead),
Dr. Marcus Georg Tischler (all Insolvency Law/Reorganization),
Dr. Michael Dröge (Real Estate Law),
Dr. Sönke Görgens (Real Estate Law/Administration Law),
Fabian G. Gaffron (Tax Law)