Traditional company on the abyss: Creditor fear for your money!

Traditional company on the abyss: Creditor fear for your money!

Neubrandenburg, Deutschland - The SMW Special machines and Werkzeugbau GmbH & Co. KG in Neubrandenburg faces serious financial challenges. On May 30, the district court of Neubrandenburg reported a "massity recipient", which means that the existing liquid funds are sufficient to cover the procedural costs, but are not sufficient to pay the other mass liabilities. This situation has a significant impact on the company's creditors.

The bankruptcy proceedings, which opened on February 1, are now continued. According to the information of the Nordkurier at best, partial reimbursement of their demands can count. Insolvency creditors, including employees, suppliers and landlords, have to expect to go empty. This reflects the challenges that companies have to cope with in such a situation.

causes and development of bankruptcy

The problems of SMW are not new; They became obvious in autumn 2024. The causes of the liquidity crisis are diverse. They lie in staggering customer payments, increased costs for energy and steel as well as a lack of wage payments. In recent years, the company has had to experience bankruptcy, the first took place in January 2020 with around 200 employees. After 18 months, the employees were able to dismiss them under conditions.

The company's turnover was 18.8 million euros in the last financial year, and it recently employed around 90 people. SMW produces machine elements such as bogies and impact buffers, mainly for Deutsche Bahn AG. On May 1st, the HENIGSDORFER Steel Engineering GmbH To alleviate the effects of bankruptcy.

Legal background of bankruptcy

According to German insolvency law, insolvency proceedings can be requested by both the debtor and creditors. The decision as to whether the bankruptcy proceedings are opened lies with the bankruptcy judge, who examines the reasons for bankruptcy ex officio. If the massity is determined, the old mass liabilities are classified according to the legal regulation in the subordination to new mode demands. This means that old believers can only insist on a statement, but not on payment.

Return to the regular insolvency proceedings could be possible if new assets or unexpected sales proceeds appear. Creditors usually have between 14 days and three months to list their demands. In the further steps, a reporting date informs the creditors about the bankruptcy estate and the company's assets. The Masser-based regulations must be indicated that a massive unreal must be reported to the insolvency court, which is also the case here.

The situation of SMW illustrates the challenges that many companies have to master in today's economic situation. The future of the company remains uncertain, and the effects on everyone involved show the cool realities of insolvency proceedings.