Heubach GmbH, part of the Germany-headquartered Heubach Group, a global provider of colour solutions, has filed an application for the opening of regular insolvency proceedings over its assets with the competent insolvency court in Braunschweig. At the same time, it applied for the jurisdiction of the Braunschweig insolvency court as the group court for the German subgroup of the Heubach Group. The court is expected to appoint an insolvency administrator to examine the possibility of continuing business operations and possible options for restructuring and/or selling the business in due course.
With the step announced today, the Group is reacting to the threat of over-indebtedness following the rapid change in the financial markets over the past two years. The Group was unable to achieve a financial restructuring with all shareholders and lenders.
Under German law, over-indebtedness occurs if the debtor’s assets - based on liquidation values - no longer cover its liabilities in a winding-up scenario. It also requires the debtor not to have a positive going concern prognosis. On the assumption that effects from restructuring measures are likely to occur, an integrated financial plan, based on a viable restructuring concept, needs to show that the debtor will have enough liquidity to meet its payment obligations for the next 12 months.
Respective Heubach companies are working to meet their obligations to employees, customers and suppliers within given financial possibilities and legal framework.
In 2021, the Heubach Group, in partnership with SK Capital, acquired Clariant's pigments business, which was integrated into the Heubach Group and has operated since under the Heubach name. The acquisition created a global pigments leader generating more than €900 million in annual sales.