Insolvency under own management
The year 2020 is not off to a good start for the Urbach-based supplier Schock Metallwerk GmbH: The specialist for linear ball bearing slides and special profiles filed an application for insolvency in self-administration with the Stuttgart District Court, which the court followed on Friday, January 17, 2020. The self-administration proceedings are intended to complete the restructuring measures begun in 2018. It is planned to continue business operations in full during the entire proceedings - according to the " Insolvenzportal " of STP Business Information GmbH.
The self-administration offers companies a legal framework to quickly reorganize their financing in close coordination with the creditors while business operations continue. Thereby the entrepreneurial responsibility remains in the hands of the management. This procedure, which is established within the framework of insolvency law, supports companies that take action themselves at an early stage in case of economic problems and have enough room for manoeuvre to find a solution. "Production, sales and development of Schock Metallwerk GmbH will continue without restrictions during the self-administration", emphasized the two managing directors Martin Schock and Helmut Fuchs of Schock Metallwerk, at the company's headquarters.
For the self-administration phase, the lawyer Jan Metzner from the renowned German restructuring law firm Elsässer has joined the management and will support the managing partners Martin Schock and Helmut Fuchs in the restructuring of the company. "Schock Metallwerk is a fundamentally healthy and competitive company with a first-class product portfolio and has taken important and necessary steps on the way to restructuring in the last two years", emphasises Metzner. "Own management provides us with the appropriate legal framework to complete the restructuring in close consultation with the creditors and to put Schock Metallwerk back on a solid financial basis in the long term". Dr. Tibor Braun from the law firm Illig, Braun, Kirschnek in Stuttgart was appointed as trustee by the competent local court.
Only Schock Metallwerk GmbH has filed the application. The US subsidiary Schock Metal America, Inc. and the Latvian sister company FTS Baltic SIA are not affected. The wages and salaries of the approximately 190 employees are secured for three months through the insolvency money.
The liquidity crisis at Schock Metallwerk is said to have been triggered by the increasing instability of a former, long-standing main supplier of powder coating and assembly in the Czech Republic - with a resulting delivery stop: "This made it necessary to bring forward the commissioning of the new production site in Latvia, which was not scheduled to start until the end of the first quarter of 2020, to August 2019. Within a few weeks, all necessary operating resources and tools had to be secured and transferred to the new sister plant FTS Baltic SIA, which was founded in June 2019, seven months earlier than planned," explains Martin Schock. In the end, customer orders could not be completely fulfilled for months despite considerable efforts. The resulting slump in sales led to considerable economic difficulties within a short period of time.
Despite the delivery problems, important customers and partners have already promised the company their support for the upcoming restructuring.