Germany—Global law firm Dentons has successfully advised AEG Power Solutions GmbH within the context of a protective shield proceeding. The insolvency plan drawn up by Dentons on behalf of AEG Power Solutions was unanimously accepted at the creditors’ meeting held on April 06, 2017 and was confirmed by the local court of Arnsberg on the same day.

AEG Power Solutions, with the support of Dentons, has achieved the most important milestone in the sustainable reorganization and continuation of its business. As soon as the plan is deemed effective, the debtor-in-possession proceedings will be terminated.

The insolvency plan comprises significant restructuring contributions of all creditors. A capital measure will be implemented once the plan takes legal effect. Due to a capital decrease to zero followed by a subsequent capital increase, the former shareholder will be substituted. All new shares which have been created by a capital increase will be taken over by AEG Power Solutions B.V. (another corporation of the 3W Group).

AEG Power Solutions is a global designer and provider of electronic systems and solutions for all critical power supply needs.  AEG Power Solutions provides reliable custom and standard power system solutions, particularly uninterruptible power systems as well as industrial chargers, and offers solutions for industrial, commercial, renewable and decentralized energy markets all over the world. The company has its main production facilities in Europe and Asia as well as sales and service centers in 14 countries.

In November 2016, the local court of Arnsberg approved the request for a protective shield proceeding filed by AEG Power Solutions with the assistance of Dentons, ordered preliminary debtor-in–possession proceedings, and appointed Dr. Rainer Eckert (Eckert Rechtsanwälte) as preliminary custodian. On  February 1, 2017 the court opened the debtor-in-possession proceedings and appointed Dr. Eckert as custodian.

Dentons Partners Andreas Ziegenhagen and Dirk Schoene have been given general power of attorney during the restructuring process. Dentons’ legal team advised AEG Power Solutions on all issues in the context of the protective shield proceedings. In particular, they negotiated and implemented the required personnel measures, prepared the Acquisition Agreement for the new owner and drafted the insolvency plan. The Dentons team also advised on the comprehensive restructuring of the debt financing of AEG Power Solutions group in all five jurisdictions involved and advised on transparency obligations under capital market laws.

In addition to his function as custodian, Dr. Eckert and his team also managed all payment transactions and assisted on employment law matters.

Consulting company comes Unternehmensberatung drafted the economic restructuring concept  and prepared and supervised the liquidity planning.

Following the implementation of German insolvency law reform in 2012 (ESUG), Dentons has advised on several successful protective shield proceedings in the market, including the protective shield proceedings for SOLARWATT and Blechformwerke Bernsbach GmbH.

Advisor AEG Power Solutions GmbH:
Dentons (Berlin, Frankfurt and Munich): Andreas Ziegenhagen (Partner, Restructuring, Insolvency and Bankruptcy), Dirk Schoene (Partner, Restructuring, Insolvency and Bankruptcy), Robert Michels (Partner, Capital Markets), Bernhard Gemmel (Partner, Banking and Finance), Dr. Benjamin Kurzberg (Counsel, Restructuring, Insolvency and Bankruptcy), Dr. Michael Seppelt (Counsel, Corporate and Tax), Matthias Stelzer (Counsel, Employment and Labor), Tobias von Gostomski (Counsel, Banking and Finance), Alina Bresler (Senior Associate, Restructuring, Insolvency and Bankruptcy), Isabelle Puhl (Senior Associate, Employment and Labor), Judith Specht (Senior Associate, Restructuring, Insolvency and Bankruptcy), Michael Valentin (Senior Associate, Banking and Finance), Valeria Hoffmann (Senior Associate, Capital Markets), Dr. Jakob Pickartz (Associate, Restructuring, Insolvency and Bankruptcy)

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