Lichtenstein/Saxony – On July 1, 2008 Chemnitz Local Court opened insolvency proceedings against Thielert Aircraft Engines GmbH. Bruno M. Kübler, who has already served as the preliminary insolvency administrator, was appointed as the company’s insolvency administrator.
The company’s business operations will continue unchanged even after opening of the insolvency proceedings. The transition from preliminary to opened insolvency proceedings is a purely formal act that has no noticeable effects on the company’s relations with its suppliers or customers.
The process of finding an investor for the company also got underway with commencement of the insolvency proceedings. "An investor who is capable of securing the existence of the company on a long-term basis at its business locations and continues to develop the company’s leading position on the market for diesel piston engines should get the nod," said Kübler. "Of course, the purchase price also plays a role."
The process of finding an investor will be carried out in several stages. Kübler already wrote to the more than fifty prospective buyers on July 2, 2008. This correspondence contains a brief exposé of the company as well as a confidentiality agreement which the prospective buyers are required to sign and return by July 16, 2008 if they plan to participate in the process to find an investor.
Such investors will then receive more comprehensive information about the company toward the end of July 2008. Those prospective investors who then desire to enter into purchasing negotiations on the basis of this information memorandum must then state their interest in purchasing the company and submit a nonbinding purchase price offer in the form of a "Letter of Intent."
These potential investors will in turn be invited to the "due diligence" and given access to the data room with complete information about the company. Thereafter the purchasing negotiations which may take up to several weeks will begin. The insolvency administrator does not expect the required negotiations to be concluded before September 2008.
Kübler also asks the public to be aware that no information may be published on prospective investors or the state of negotiations until successful conclusion of the required discussions with investors in order not to jeopardize these discussions through indiscretion.
