Business News

Ad Hoc: schlott gruppe AG: more than 50 per cent of share capital eroded

Thursday 20. January 2011 - On 18 January 2011, the District Court of Nuremberg appointed Dr. Siegfried Beck as the provisional insolvency administrator for schlott gruppe AG and its domestic subsidiaries.

Having submitted an application for the commencement of insolvency proceedings, schlott gruppe AG will have to conduct its accounting on the basis of liquidation value. In particular, this will have an influence on the measurement and recognition of interests in and receivables from affiliated entities.
As a result, schlott gruppe AG is faced with an erosion of share capital by more than 50 per cent.
Pursuant to Section 92 of the German Stock Corporation Act (Aktiengesetz – AktG), the company is therefore obliged to convene immediately an Extraordinary Meeting of Shareholders.
In view of the current situation, the provisional insolvency administrator is not in a position to approve the funds required for the purpose of convening an Extraordinary Meeting of Shareholders. Therefore, at present no date can be specified in respect of such an Extraordinary Meeting of Shareholders.