Praktiker: breakdown of negotiations

The board of Praktiker AG has negated the positive forecast for the continuation of Praktiker AG and individual companies within the group.

Praktiker AG’s inability to pay is given as the reason for its insolvency, in addition to overindebtedness. Negotiations on further rescue financing, which seemed promising at first, broke down on the evening of 10 July 2013 because several creditor groupings failed to vote for them.

The alternative financing solution had become necessary shortly beforehand, after the sale of share holdings to the Luxembourg subsidiary The board of Praktiker AG has negated the positive forecast for the continuation of Praktiker AG and individual companies within the group.

Praktiker AG’s inability to pay is given as the reason for its insolvency, in addition to overindebtedness. Negotiations on further rescue financing, which seemed promising at first, broke down on the evening of 10 July 2013 because several creditor groupings failed to vote for them.

The alternative financing solution had become necessary shortly beforehand, after the sale of share holdings to the Luxembourg subsidiary Bâtiself S.A. could not be concluded because of board reservations on the buyer’s side, which meant the proceeds expected from the sale could not be realised. These proceeds had been integrated into the financing concept from the year 2012.

The board will undertake an investigation for the group into which companies within the group need to file applications for administration and will publish the results of this investigation as soon as possible. This is one way of attempting to keep both the independent international companies and the Max Bahr trading channel out of the bankruptcy proceedings.