Heubach Colorants Sister Concern Files For Insolvency In Germany

Heubach Colorants Sister Concern Files For Insolvency In Germany

Heubach Colorants India Ltd.’s Germany-based sister concern Heubach GmbH filed for insolvency proceedings over its assets with the bankruptcy court in Braunschweig.

Heubach GmbH, a part of Heubach Group, also applied for the jurisdiction of the Braunschweig insolvency court as the group court, according to a stock exchange announcement.

Heubach GmbH said the court is likely to appoint an insolvency administrator to examine the possibility of continuing business operations and possible options for restructuring and/or selling the business in due course.

Heubach is a leading international manufacturer of pigment preparations, anti-corrosive pigments, organic and inorganic pigments, according to its website.

Heubach said with the announced step, the group is reacting to the threat of over-indebtedness in the context of rapidly changing financial markets of the past two years and the unsuccessful attempt of achieving a financial restructuring with all shareholders and lenders.

Respective Heubach companies are working to meet their obligations to employees, customers and suppliers within given financial possibilities and legal framework, it added.

Heubach Colorants said it continues to closely monitor any related developments and assess the impact on the company.

Shares of Heubach Colorants slumped 13.3% to 402.40 rupees on India’s National Stock Exchange in Mumbai afternoon trading today.

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