I am pleased to inform you that Tadano Demag and Tadano Faun have reached an important milestone in the realignment of the companies. On December 23, 2020, the management submitted the restructuring plan to the Zweibrücken District Court. In the next step, insolvency proceedings for Tadano Demag and Tadano Faun are expected to be opened at the beginning of January 2021. This corresponds to the usual course of protective shield proceedings, and accordingly the restructuring of the companies is progressing as planned. We are also managing the business independently in this second phase of the protective shield proceedings.
As general representative (CRO), attorney Martin Mucha, experienced restructuring expert of the law firm GRUB BRUGGER, will continue to closely support us in the course of the protective shield proceedings. In addition, Arndt Geiwitz, another renowned restructuring expert from the law firm SGP Schneider Geiwitz & Partner, will act as (provisional) trustee of Tadano Demag and Tadano Faun.
After the opening of proceedings in January 2021, the implementation of the restructuring plan will start under the protection of the Insolvency Code. Another important step in the process will be the discussion and ballot meeting with the creditors, which the court is expected to hold in mid-/end February 2021. Company management currently expects to be able to exit the protective shield proceedings at the end of the first quarter of 2021.
Restructuring in key areas
The plan envisages restructuring of the companies in all key areas. The most important cornerstones are organizational realignment, improvement of economics, and modernization and optimization of the product portfolio. In the future, we want to provide you, our customers, with a much broader and more complete portfolio of lifting solutions, creating even greater flexibility and the potential for larger package deals. Already this year we have launched the AC 450-7 and the GTC-1800EX, and in the coming months more innovations will come, such as the AC 80-4 and new models in the HK series. In total, Tadano Demag and Tadano Faun will establish about 15 new products on the market in the next four years. Another goal is to invest more in our customer support services. To this end, we have already taken numerous steps, such as harmonizing our sales and service structures, as well as developing joint product and technology programs. We want to continue along this path and are planning, for example, a Group-wide reorganization of sales structures to make business even easier for you.
"Best of both worlds"
All measures will continue to focus on the principle of "best of both worlds". Moving forward we will leverage the respective strengths of Tadano Demag and Tadano Faun even more strategically. As part of the realignment, we are therefore also planning to standardize certain systems, such as the control systems or our cabins.
As you have seen in recent weeks, business operations will continue, and existing as well as new orders will be fulfilled under the conditions of the protective shield proceedings. Of course, regular services such as repairs, maintenance and spare parts deliveries will also continue as normal. Accordingly, you can rest assured that as we move forward under the conditions of the proceedings, our cooperation will continue as reliably as usual.
With the completion and submission of the restructuring plan, we have taken an important step in the realignment process. At this point, I would like to express my thanks to you for your confidence in Tadano Demag and Tadano Faun. We are receiving great support from many quarters and have thus already been able to achieve good results and rapid progress in the first few weeks of the protective shield proceedings. This makes us very confident about the future of Tadano Demag and Tadano Faun.
We will, of course, continue to keep you informed of developments.
If you have any questions, please do not hesitate to contact your usual contact person.
We look forward to our continued cooperation and wish you and your families a Merry Christmas.
Jens Ennen, CEO Tadano Demag GmbH / Tadano Faun GmbH