paragon restructuring is beginning to take shape
- DIP loan not utilized
- Company has finalized insolvency plan
- Chief financial officer Werner to step down as of January 31
paragon AG is to be continued as a going concern, as previously announced. The local court in Paderborn opened the Company's insolvency proceedings on January 1 this year. Dr. Frank Kebekus, an attorney who runs a law firm in Paderborn, has been appointed as insolvency administrator. The Company plans to file its finalized insolvency plan with the local court in Paderborn over the next few days. A debtorinpossession (DIP) loan that had been extended but not drawn down has now been cancelled.
The timetable for the forthcoming insolvency proceedings has now been finalized. Dr. Kebekus will inform the Company's creditors about the current status of these proceedings at a creditors' meeting on February 19, 2010. A special consultation meeting will subsequently be held to discuss the Company's insolvency plan. The receivables entered in the insolvency register will be examined as part of a written procedure on March 5. "The bestcase scenario is that paragon AG might complete its restructuring as early as the second quarter of this year," commented Dr. Kebekus, the insolvency administrator. He also stated that a bank had given its commitment in principle to finance the Company's insolvency plan.
Personnelrelated decisions were also taken at the time the Company's insolvency proceedings were being opened. Chief executive officer Klaus Dieter Frers and restructuring director Andrew Seidl are to remain in post, while chief financial officer Markus Werner will step down from the executive board by mutual consent as of January 31 this year; his duties will be performed by others at the Company until further notice.
"Our close collaboration with Dr. Kebekus has enabled us to keep our insolvency proceedings fully on schedule. Once the Company has deleveraged its business, our prospects will be extremely encouraging," Frers emphasized, pointing out that paragon AG had not utilized its DIP loan of several million euros, which had recently been cancelled. At the beginning of this year the Company possessed an adequate liquidity buffer. Due to an upturn in business, paragon is once again able to pay its wages and salaries as well as VAT in full. According to Frers, the Company is able to finance itself from its own resources.
paragon AG is a direct supplier to the automotive industry and is listed on the Deutsche Börse Prime Standard index in Frankfurt/Main, Germany. The Company develops, manufactures, and markets innovative solutions in its Automotive (Sensors/Actuators and Cockpit Systems) and Electronic Solutions divisions. Its product portfolio includes the world's leading AQS air quality sensor by far as well as handsfree speaking equipment and instrumentation systems. In addition to its headquarters in Delbrück, North Rhine-Westphalia, paragon also operates locations in Suhl, Thuringia; St. Georgen, Baden-Württemberg; Nuremberg, Bavaria; and Heidenheim, Baden-Württemberg. In fiscal 2007, the paragon Group generated sales totaling €108.9 million with a workforce of 594 employees.