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Creditors approve reorganization plans for Tadano Demag and Tadano Faun

At today’s discussion and voting meeting in Zweibrücken, Tadano Demag GmbH’s and Tadano Faun GmbH’s creditors approved the reorganization plans for both companies. The creditors’ meeting unanimously approved the restructuring plan for Tadano Faun. For the Tadano Demag plan, approval was almost unanimous at 99 percent. The Zweibrücken local court opened protective shield proceedings for Tadano Demag and Tadano Faun at the beginning of January 2021 after the corresponding legal petition was filed and the plans were formally reviewed.

With the creditor’s meeting’s approval, management will now systematically continue with the company’s reorganization and the corresponding operational restructuring measures, some of which have already been initiated. Tadano Demag and Tadano Faun will be exiting protective shield proceedings by the end of the first quarter of 2021, meaning that the proceedings went exactly as scheduled.

The reorganization plan features a broad range of actions that extend across all areas in the company and that are carefully designed to work together to maximize results. Within this context, the processes at the Zweibrücken and Lauf locations will be coordinated even better, and the best characteristics and strengths of the two companies will be used in a targeted manner. In the future, centers of excellence for the company’s superstructures and carriers will ensure that production operations are perfectly integrated. Moreover, this is expected to significantly speed up the standardization and optimization processes for these production operations. At the same time, synergistic effects will be used more effectively in order to improve cost-effectiveness. This has included an unavoidable personnel reduction that affected both locations similarly but that was fine-tuned to optimize operations and minimize the impact on the team. Both facilities will play a key role in achieving the Tadano Group’s long-term goal of becoming the world’s leading supplier in the lifting equipment industry.

A more efficient and strategic use of resources will make it possible to drive innovation better and more systematically in the future. Within this context, the focus will be on developing new, innovative products – not just machines, but technologies and services as well. A key measure in the reorganization plan is updating the company’s product portfolio. In the future, our customers will have a significantly wider and more comprehensive portfolio of lifting equipment solutions available to them, and this will provide greater flexibility even with large package deals. In fact, a series of new products will be launched on the market in the next few months.

Jens Ennen, CEO of Tadano Demag and Tadano Faun: “With the creditors’ approval, we now have a clear mandate and the task of continuing to consistently drive forward the company’s reorganization and implement the operational restructuring measures that have already been partially initiated. We have established the roadmap for the future in these protective shield proceedings, the successful conclusion of the proceedings is imminent and we will continue quickly and efficiently along the path we have chosen. Tadano Demag and Tadano Faun will continue to be strong and reliable partners for our customers in the future and will offer even better and more innovative products and services.”

Martin Mucha (GRUB BRUGGER), Chief Representative of Tadano Demag and Tadano Faun: “I am very happy with how the proceedings went. I would like to thank all the parties involved in the process for their goal-oriented and constructive collaboration. That was what made it possible, in these unusual times, to really make Tadano Germany’s urgently required restructuring and reorganization possible. I am absolutely confident that Tadano Demag and Tadano Faun will take full advantage of the chance represented by today’s decision.”

Arndt Geiwitz (SGP Schneider Geiwitz), trustee of Tadano Demag and Tadano Faun: “The fact that a company of this complexity and size has received creditors’ approval by overwhelming majority for the restructuring plan only 19 weeks after filing for insolvency is the result of the excellent cooperation of all bodies and stakeholders. The customers, the suppliers, the trade credit insurers and the employee representatives have supported this restructuring process in a very positive manner. I am very grateful and confident that Tadano Germany will have a successful future.”

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