Loewe AG files for creditor protection in Germany
Luxury TV manufacturer Loewe has filed for protection from creditors while it implements a re-structuring programme. The board says it has taken the action "to assist the company in implementing its restructuring programme and its new corporate strategy more quickly".
Under German law, indebted companies can submit an application for 'Schutzschirmverfahren' (a bit like Chapter 11 in the US) which gives them three months to restructure themselves while still maintaining control of the business, even if they are technically bankrupt.
Loewe's executive board has has submitted an application with the local court for Loewe AG and its subsidiary Loewe Opta GmBH to begin the process of Schutzschirmverfahren.
All other subsidiaries in Germany and elsewhere, including the UK, will continue to operate as normal. Business at the firm's Kronach site "will continue without any restrictions", the company says.
"After receiving approval for the proceedings, Loewe will continue to be managed by its executive board and can use the opportunities offered to restructure the company."
By Andy Clough