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10/14/16

Seed producer Strube GmbH & Co. KG wants to reposition the company during protection proceeding


Söllingen/Wolfsburg, 14th October 2016

•    Reason is a legal dispute with a former cooperation partner from Belgium, which lead to an arbitration process in Belgium. A preliminary arbitral award made us liable to a high, though legally questionable payment obligation as well as non-definable surrender claims

 

•    With the initiated protection proceeding, Strube obtains safeguard for the disputed claims in the first instance. This way we keep different options open to operate as an independent company within the market.

 

•    Our business operation is not affected by this and will, without restrictions continue in full. All deliveries for the upcoming sowing will be performed as scheduled. Other companies of the Strube group is not affected by the application.

Strube’s management has proposed to institute protection proceedings at the responsible local court in Wolfsburg on 12th October 2016. The application has been granted by the local court. For the protection proceeding the auditor Mr. Arndt Geiwitz from the nationwide active chancery Schneider Geiwitz and Partners will act as preliminary custodian.

The management will stay in full control of the operating business. Because of the situation, attorney Sebastian Rudow, Restructuring Expert of chamber Wellensiek Attorneys was asked to join the management board.

The application for protection proceedings was necessary, because we have terminated the collaboration with our partner from Belgium more than five years ago, after a long debate. During the separation process, a legal dispute arose which lead to an arbitration process in Belgium. The preliminary arbitral award which was eventually given in the middle of the year 2015, made us liable to a high, though legally questionable payment obligation as well as non-definable surrender claims which respectively, we do not accept. According to our legal advisers this provisional arbitral award needs to be withdrawn mandatorily, which is the reason why we have submitted an action by annulment in the same year in Belgium. In the process of cancellation proceedings, first hearings are currently made.

Notwithstanding the legal assessment, the enforcement in Germany was pending, based on the preliminary arbitral award. Recent discussions, during which we offered absolute transparency for our former cooperation partner as well submitting a final, extensive settlement offer, remained without a result.

Our business operation is not affected by this and will, without restrictions continue in full. All deliveries for the upcoming sowing will be performed as scheduled. Strube further on offers the entire product range as well as consultancy service and know-how without any restrictions. Other companies of the Strube group are not affected by the application.

Although our operating business is healthy, has been unrestrictedly ongoing and still is and although our products are qualitatively superior, not least based on our excellent development- and breeder activities, Strube would be insolvent in case of enforcement.

With the initiated protection proceeding, Strube obtains safeguard for the disputed claims in the first instance. Enforcement orders which would be obtained due to the arbitral award, which in our perspective is not viable, cannot be executed. This way we keep different options open to operate as an independent company within the market.


 

Media Contacts


Strube GmbH & Co. KG

Elisabeth von Westarp
Press Officer
Communication & Marketing

T    +49 5354 809 959
M   +49 170 656 28 72
F    +49 5354 809 937
presse@strube.net

    Remediation Expert

Holger Voskuhl
Communications Consultant
rw konzept GmbH

T    +49 2214 007 387
M    +49 170 2101 523
F    +49 2214 007 388
voskuhl@rw-konzept.de


About Strube GmbH & Co. KG
Strube GmbH & Co. KG from Söllingen refines and sales seed for farmers and the industry internationally. Strube offers its clients high-performance varieties with superior seed quality and also advice and valuable information about cultivation and processing of the seed. The company has 230 employees and an annual turnover of approximately 80m Euros. More information on the homepage www.strube-international.net.

About the protection proceeding
The protection proceeding was introduced in 2012 in the law concerning facilitation of remediation of companies (ESUG). It is meant as an incentive to file for insolvency in time, to improve chances of remediation. Prerequisite for entering the protection proceeding is solvency of the company at the time of application. In this way, the company obtains the opportunity to prepare a plan for remediation. The application has to be handed in with a voucher by an accountant experienced in matters of insolvency, by an auditor of attorney or another person with comparable qualifications. The voucher has to include reasons and make clear, that illiquidity or over-indebtedness is impending, but that the company is solvent and that chances for remediation are not unpromising. During the protection proceeding the company manages itself. That means, the General Management remains in place and has operative responsibility. In addition, the court appoints a preliminary custodian, who supports and controls the management and the company in the interests of the debt holders.


Source: Strube GmbH & Co. KG

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