“CHOREN Industries GmbH” – a pioneer in the development of biofuel technologies and headquartered in Freiberg (in Saxony, Germany) – has launched insolvency proceedings, together with its two German subsidiaries. The temporary insolvency administrators appointed for the three companies are Bruno Kübler, Bettina Breitenbücher and Tim Brune of the nationwide KÜBLER law firm. Unaffected by the insolvency proceedings for the time being are the foreign companies CHOREN USA LLC and CHOREN China Co., Ltd. The insolvency administrators intend to keep group business operations running and unaffected during initial proceedings. Wages and salaries for the approx. 290 German employees are secured for three months through insolvency employee insolvency payout funds.
The administrators intend to restructure the CHOREN Group through an insolvency plan or through sale of the group to an investor. The goal is to secure as many jobs as possible. “The CHOREN Group is one of the innovationleaders in a growth industry and has a competitive technology with genuine unique selling propositions,” emphasized Bruno Kübler, temporary insolvency administrator for parent company CHOREN Industries. “That’s why the insolvency proceedings that have now been launched offer good opportunities for the Group’s rescue and sustained development.” The administrators will be launching consultations with investors in the near future.
The insolvency administrators are currently involved in gaining an initial overview of the situation of the individual companies. The most important customers and suppliers are being contacted as well in the effort to keep business operations running. The administrators have already informed the employees of the situation and the steps ahead.
Specifically, the following companies have initiated insolvency proceedings: CHOREN Industries GmbH (around 140 employees), CHOREN Fuel Freiberg GmbH & Co. KG (approx. 125 employees) and CHOREN Components GmbH (about 25 employees).
The insolvency administrators point out that they must first have a more complete picture of the situation in the individual companies before they can provide information relative to the measures to follow. They ask the public’s patience in the meantime.
The CHOREN Group employs a workforce of around 300 worldwide and is one of the world’s leading providers of technologies for the generation of synthetic gas from carbonaceous biomass, such as e.g. wood. Currently CHOREN is commissioning a demonstration plant in Freiberg for the generation of 2nd-generation biofuels based on “Carbo-V®”, the CHOREN technology for synthetic gas. Shareholders of the CHOREN Group include Gasification Holding GmbH, the Acorma Corporation and an array of private investors. Smaller shares are held by the automobile groups Daimler AG and Volkswagen AG. The insolvency was brought about as the result of financing difficulties associated with the commissioning of the synthetic-gas demonstration plant.
KÜBLER, one of the leading law firms in the field of insolvency and reorganization law, is also active throughout Germany in a consultant or forensic capacity in numerous other fields of private and public commercial law. With more than 60 partners and over 230 employees at 27 locations, we are among the leading commercial law firms.
Source: Choren, press release, 2011-07-08.