Tadano Demag GmbH and Tadano Faun GmbH announced they have reached an important milestone in the restructuring of the companies. On 23 December 2020, the management submitted the restructuring plan to the Zweibrücken District Court. In the next step, the insolvency proceedings for Tadano Demag and Tadano Faun are expected to be opened at the beginning of January 2021. This corresponds to the usual procedure of protective shield proceedings, and accordingly, the restructuring of the companies is progressing as planned.
Both companies will continue to be managed independently under the leadership of CEO Jens Ennen during this second phase of the protective shield proceedings. Martin Mucha, an expert restructuring lawyer at the law firm Grub Brugger, will continue to closely support the management as general representative. In addition, Arndt Geiwitz, another renowned restructuring expert from the law firm SGP Schneider Geiwitz & Partner, will act as (provisional) trustee of Tadano Demag and Tadano Faun.
After the anticipated opening of proceedings in January 2021, implementation of the restructuring plan will begin under the regulations of the German Insolvency Code. Another important step in the process will be the discussion and ballot meeting with the creditors, which the court is expected to hold in mid/end-February 2021. Company management currently expects to be able to exit the protective shield proceedings at the end of the first quarter of 2021.
The plan envisages a restructuring of the companies in all key areas. The most important elements are the organisational realignment, the improvement of profitability as well as the modernisation and optimisation of the product portfolio. A large part of the measures is aimed at further coordination between the two locations in Zweibrücken and Lauf and implementing more efficient processes. The better use of synergies offers great potential for improving competitiveness.
In addition, a far broader and more complete range of lifting equipment solutions will be available for the customers in the future, creating greater potential for larger package deals and ultimately enhancing the customer experience. Several new products are scheduled to be launched within the next few months.
As in previous months, business operations will stay on under the prerequisites of the protective shield proceedings. Production at Tadano Demag and Tadano Faun in Germany will remain, and all existing and new orders will be fulfilled according to the regulations of the protective shield proceedings. Collaboration with customers will proceed as usual, and regular services such as repairs, maintenance, spare parts deliveries and warranty work will carry on as per normal.
Jens Ennen, CEO of Tadano Demag and Tadano Faun said, “With the completion and submission of the restructuring plan, we have taken an important step in the reorganisation of Tadano Demag and Tadano Faun. I would like to explicitly thank the employee representatives and the creditors' committee for their constructive cooperation, as well as our employees, customers and business partners for their trust. The results and rapid progress we have already been able to achieve in the first weeks of the protective shield proceedings make us very confident about the future and future competitiveness of Tadano Demag and Tadano Faun.”
A restructuring of the companies was deemed absolutely necessary in view of increasing competitive pressure due to the enormous economic challenges that had been significantly exacerbated by the coronavirus crisis. The aim of this restructuring measures is to position the two companies in the future in an economically viable way, to be able to serve the needs of customers even better with products and services, and thus to contribute in the best possible way to the strategic goals of the Tadano Group.
The Japanese parent company Tadano Ltd is in close and continuous exchange with the management of its German subsidiaries. The long-term goal of the Tadano Group remains to become the world's leading supplier in the lifting equipment industry. Both companies, Tadano Demag and Tadano Faun, play a decisive role in this endeavour.