German Pellets update – another plant sold – production will continue /Lennart Ljungblom/2016-07-05 /

German Pellets update – another plant sold – production will continue

PLT Pellet Lohnfertigung Torgau GmbH is the new owner of the assets of German Pellets Sachsen GmbH in Torgau.  The production will be restarted immediately according to the new owner. The administrator  of the insolvency procecess Bettina Schmudde from Kanzlei White & Case in Hamburg said “ “We are very relieved that we have been successful with the sale of the last remaining plant of German Pellets Group and that the majority of jobs in the group of German Pellets are maintained. The purchase price were not disclosed.

German Pellets filed for bankruptcy in February 2016. Two of the fully owned plants was in May 1 bought by the German wood working company J. Rettenmaier & Söhne and the main plant in Wismar was at the same time bout by the American financial investor Metropolitan Equity Partners. As the conditions in the contracts now have been fulfilled the plants are by July 1, fully transferred to the new owners, according to a press release  from Bettina Schmudde.

Beatina Schmudde

Beatina Schmudde

In June was also the power plant in Langerlo in Flandern in Belgium that was recently bought by Peter Leibold overtaken by the Estonian pellet producer Graanul Invest. Graanul Invest is now the largest pellet producer in Europe.

German Pellets two american production units, Louisiana Pellets Inc, in Urania and Texas pellets Inc. in  Woodville, are also insolvent and have filed for Chapter 11 bankruptcy. Invesco is the largest holder of Louisiana Pellets debt, with about $89 million in  its funds as of Dec. 31, data compiled by Bloomberg show. The next biggest owner is Waddell & Reed, with $22.5 million, then AllianceBernstein with $18.5  million. For its first U.S. location, in Woodville, Texas, German Pellets also borrowed $187 million in 2012 through a development agency in Sanger, Texas. Invesco is the largest holder of those securities as well, with $39.6 million.

Peter Leibold, the manager and main owner of German Pellets did in October 2015 in a complicated structure with 20 fully and partly owned subsidiaries control a large number of  production and marketing companies in Europe and the United States. The 14 production sites have a capacity of more than 2.7 tons of wood pellets.  Four months later, the founder went bankrupt. /Lennart Ljungblom/2016-07-05 /