Shareholder withdraws funds and ponders: What's the fate of 88 positions?
In a bid to secure its future and fulfill contractual obligations, Reserv GmbH, a garden and building cleaning company based in Prenzlau, has announced its intention to pursue a self-administered insolvency procedure. This legal process, common in Germany, allows the company to manage its own insolvency proceedings under court supervision while continuing its business operations.
The Process of Self-Administered Insolvency
- Filing for Insolvency with Self-Administration Request Reserv GmbH has voluntarily filed for insolvency and requested the court to allow it to retain management authority (self-administration).
- Court Approval and Appointment of a Supervisory Trustee If the court approves, a trustee or supervisor will be appointed to oversee the process, but the company’s management will continue to run day-to-day operations.
- Creditor Involvement and Insolvency Plan Reserv GmbH will work transparently with creditors and submit an insolvency plan, proposing how debts will be restructured or negotiated.
- Operating Business as Usual During this period, the company will continue normal business operations without interruption.
- Debt Separation and Restructuring The insolvency plan will legally separate the pre-insolvency debts from the ongoing business operations.
- Plan Confirmation and Exit from Insolvency After the creditors and court approve the plan, the company will execute the restructuring, leading to sustainability by reducing the burden of past debts.
How This Helps Companies Like Reserv GmbH
- Continuity of Operations: Reserv GmbH can continue its day-to-day business in Prenzlau without interruption, preserving jobs and customer relationships.
- Retaining Control: The company’s management stays in charge, aiding in quicker decision-making and better knowledge continuity about the business.
- Clear Separation of Debts: The insolvency process legally separates "old" debts from the ongoing business.
- Improved Creditor Cooperation: Transparent self-administration encourages creditors to cooperate since they can see the company is actively managing its restructuring.
- Potential for Viability: By restructuring debts, Reserv GmbH gains a realistic chance to become financially healthy again rather than being liquidated.
Recent Developments
In a surprising turn of events, one of the shareholders of Reserv GmbH has disappeared, emptying the company’s accounts since January 1st, 2024, leaving only low three-digit euro amounts. The other shareholder has filed a criminal complaint. Uwe Frick, who serves as a proxy for the company, is scheduled for a notary appointment on August 11 to once again act in this capacity. The missing shareholder is presumed to have disappeared abroad.
The conversation between Uwe Frick and tax advisor Donald Balk from Perleberg was a shock. Despite these challenges, Frick remains optimistic about the order situation in gardening and building cleaning, which he describes as more than good, and believes it will keep the company on an economically successful course in the short and medium term.
Mayor Hendrik Sommer and his first deputy, Marek Wöller-Beetz, have expressed support for the company in its difficult situation. They have stated that they do not intend to exercise the special right of termination in case of insolvency.
Uwe Frick has assured that Reserv GmbH will fulfill its contractual obligations to business partners and customers to 100 percent. He also guarantees payment to service providers and suppliers. Frick played a key role in successfully restructuring Reserv GmbH through self-administered insolvency in 2015, saving most of the jobs and putting the company on solid economic footing.
At least the 88 Reserv employees received their June salaries early. Frick will return to Prenzlau on July 10th to assess the situation at Reserv GmbH. He will continue in an advisory capacity until May 2024.
- To ensure the continuity of its operations and fulfill contractual obligations, Reserv GmbH is employing a self-administered insolvency procedure, which allows the company to keep running under court supervision while making necessary financial arrangements with creditors.
- In light of the recent financial challenges, the management of Reserv GmbH remains optimistic about the company's future in the gardening and building cleaning business, utilizing the self-administered insolvency process to restructure debts and secure a financially healthy future for the company.
