JAMA Kunststoffverarbeitung GmbH: Successful restructuring under self-administration

In August 2023, JAMA Kunststoffverarbeitung GmbH filed for the opening of a restructuring under self-administration procedure. The company’s management board was advised in this instance by BBL partners Justus von Buchwaldt and Georg Schloenbach as general agents, and the BBL partners Dr Rouven Quick (restructuring consulting) and Jan Hölck (employment law).

JAMA’s financial difficulties were triggered by a drastic slump in sales in 2023 caused by the emergency in Ukraine and a downstream sales crisis that befell a major customer. The situation was further intensified by the steep rise in energy costs as JAMA was forced to agree to a long-term energy supply contract under highly unfavourable conditions. Since the effects of the Covid pandemic on the company’s revenues meant it had no financial reserves to speak of, there were few funds available to meet its increasing liabilities.

While the management board’s efforts to diversify the customer base and tap into new markets did bear some fruit, the results of its customer acquisition activities were not sufficient to achieve a turnaround. The management identified the existential risks to the business created by the circumstances in which it found itself, and took active countermeasures by filing for insolvency.

The insolvency plan developed by the BBL team for restructuring JAMA was unanimously accepted by the creditors, and approved by the local court of Celle. Business operations have proceeded unabated since the commencement of the restructuring procedure. 80 of the 99 original jobs were saved and general business activities have continued without any constraints.