Heubach GmbH, part of the Germany-headquartered Heubach Group, a global provider of color solutions, has filed an application to open insolvency proceedings over its assets in Braunschweig, Germany. It also is seeking insolvency 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.
In an April 23 announcement, Heubach Group reacted to the threat of over-indebtedness following the rapid change in the financial markets during the past two years. Heubach said it 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. It also requires the debtor not to have a positive economic outlook. On the assumption that restructuring measures are likely to occur, the business must show debtors that it will be able to have enough liquidity to meet its payment obligations for the next 12 months.
The 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 has operated since under the Heubach name. The acquisition created a global pigments leader generating more than 900 million euros in annual sales.