Pfleiderer deal saves 3,600 jobs

The insolvency plan agreed by creditors in September has taken legal effect after a court ruling in Düsseldorf. Ownership will pass to Luxembourg-based company Atlantik. Stock held by former shareholders will cease to exist and €900m of debts will be written off.

The new company will have €310m in financial liabilities which, the court said, corresponds to debt levels typically seen in the market. It will be left with €165m of equity to provide a "solid foundation" to finance itself.

Pfleiderer will continue with the production and sales sites in Germany and retain a majority stake in the Polish engineered wood company.

"I am delighted that it was possible to turn Pfleiderer into a healthy and powerful company in the engineered wood industry and save about 3,600 jobs," said Hans-Joachim Ziems, executive board member of Pfleiderer.

The latest financial results revealed Pfleiderer posted a 33% rise in earnings before interest, taxes, depreciation and amortisation of €74.2m in its western European operations for 2011. Accounting for restructuring costs EBITDA was up by 187% to €63.5m.

Sales reached a better-than-expected €689m, nearly equalling the €692m recorded in 2010, despite the closure of three German production sites.

The group reported larger volumes of higher quality products, improved group efficiency and price increases for raw particleboard and surface-finished panels.