THE MERCANTILE COURT NUMBER 2 PASSES JUDGEMENT APPROVING THE CREDITORS AGREEMENT PROPOSED BY TAIM WESER S.A.
Taim Weser S.A. has overcome the insolvency process by receiving adhesions to their proposed Creditors Agreement representing more than 65% of the Ordinary Debt.
On the 13Th. of May 2024 the Mercantile Court No.2 of Zaragoza passed Judgement ordering the immediate cessation of the effects of the insolvency process.
TAIM WESER, which operates in various sectors (mining, energy....) by developing engineering projects, was born out of the merger with TFG, who this year will reach 125 years of activity and the German Company Weser Engineering dedicated to bulk material handling. Today Taim Weser is an Internationally recognised leader in the design, manufacture, supply and maintenance of Cranes for the Nuclear, Steel and Petrochemical Industries as well as large Bulk Handling Machinery.
In 2020 the Projects on order at Taim Weser were 100% International projects, however this strength was converted into a weakness by COVID. Movement restrictions provoked the stoppages of Projects, thereby altering the project Time Schedules and severely affecting the economical and financial situation of the Company.
The need arose to start negotiations on a much needed and inevitable financial restructuring of the Company, with the support of MAZARS, International consultancy experts, and with the entry of a British Investment Fund. During the first quarter of 2022 and in the middle of drafting documents , the invasion of Ukraine took place.
At that time the Company was working on 2 Projects with a combined value of 35 million Euros for 2 refineries in Russia. These projects , due to the European Regulations , were stopped under the threat of Sanctions. This in turn produced a loss of interest from the Investment Fund and further aggravated the financial situation of the Company.
After further attempts at restructuring the finances of the Company, on the 20Th. of March 2023 the Mercantile Court No. 2 of Zaragoza declared the Insolvency of the Company.
During this period work has been carried out with three objectives:
* Fulfill existing contracts so as not to cause damage to Clients and to protect the Client Base. This has been achieved as can be seen by the renewal of confidence form the Clients with new orders.
* To speed up the processing of the insolvency and to recover normality in the management of the different business areas, collaborating with the Court and the Court appointed Insolvency Administration. After 13 months the approval of the Creditors Agreement proposed by the Company has been achieved and 66,89% of the Ordinary Debt have supported the Agreement.
* To maintain the confidence and motivation of the workforce, which without doubt is the most valuable asset of the Company, much affected by the uncertainties over such a long period of time. During this period the Company has also had to agree on a Short Time Working Agreement for the whole workforce which has been legally authorised and approved by the relevant Labour Authority.
From now onwards, after the passing of the Judgement on 13Th. of May 2024, the process starts for recovering Market share and reputation; to incorporate new Projects with Clients with renewed confidence in TAIM WESER who they see as a Strategic Supplier.
