19 Nov 2014 08:00
19 November 2014
Hightex Group plc
("Hightex" or the "Company")
Hightex GmbH, the principal operating subsidiary of Hightex Group plc, has submitted an application to the German courts for 'personal management', a German legal process also known as 'debtor in possession' ('Eigenverwaltung'). The 'Eigenverwaltung' procedure is similar to a Chapter 11 procedure in the United States. The objective is the reorganisation and continuation of the subsidiary.
The Management of Hightex GmbH has taken this decision since, despite the very considerable efforts of Hightex GmbH, it has not been able to conclude a final solution for the consequences of the fraud committed by the management of the Brazilian JV company. The insurance claim has been partially paid by Euler Hermes but has not been fully resolved with Allianz.
Mr. Joerg Spies, an experienced lawyer and consultant for restructuring procedures in this field, will reinforce the management team of Hightex GmbH as Chief Restructuring Officer (CRO). The responsible court in Germany has agreed to this procedure.
The Eigenverwaltung procedure does not currently affect other Group subsidiaries.
The Board will continue its discussions with the TCA's representative about the TCA loan, in light of the Eigenverwaltung procedure.
Charles DesForges, Non-Executive Chairman of Hightex, commented:
"The board believes that this is the best course of action to reduce debt levels and to manage the financial consequences of the fraud in Brazil. We will keep shareholders fully informed as to progress".
For further information contact:
Hightex Group plc | |
Charles DesForges, Non-Executive Chairman | Tel: +49 8051 6888 200 |
Frank Molter, Chief Executive Officer
| www.hightexworld.com |
ZAI Corporate Finance Ltd | |
Nominated Adviser and Broker Tom Price / Irina Lomova | Tel: +44 20 7060 2220 www.zaicf.com |