The firm seems to be buying time to concentrate on restructuring, and will consult with creditors over the coming weeks to develop a reorganisation strategy. However, previous negotiations were unsuccessful, and there is no evidence that the upcoming talks will be any different, which is why the company has chosen to file for insolvency due to ‘over-indebtedness’.

“As we have already managed to increase our earnings we now want to use the insolvency to reduce the company’s debt. We want the company to emerge from the insolvency stronger”, chief executive officer Henrik Felbier comments.

The ongoing uncertainty will no doubt damage Neschen’s market position across Europe. And the comments from Felbier in regards to the emergence from insolvency before it has even dealt with current debtors will be unwelcome news for its current creditors.



Felbier added that Sandton, the creditors, were ‘not interested in a sustainable solution for Neschen without insolvency from the beginning’, and a statement on the Neschen website claims that it is not clear who rightfully owns Neschen’s loans, J.P. Morgan or Sandton.

It reads: “The company established by Sandton in Luxembourg for the acquisition of the loan obviously lacks the permissions required under supervisory law for banking and other financial transactions.”

The statement goes on to allege that Neschen has received no response to requests to J.P. Morgan that they co-operate in refinancing. Neschen’s European distribution businesses will remain unaffected by the insolvency.

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