Till Becker was appointed executive director at Hess AG last month
Hess AG and its subsidiary Hess Lichttechnik GmbH have started insolvency proceedings.
Till Becker, sole member of the management board of Hess AG, filed the application with the competent local court of Villingen in Germany, as is required by law.
Becker said: “Despite [pursuing] all alternatives, we were required to file for insolvency because [of] the illiquidity both with regard of Hess AG and Hess Lichttechnik GmbH […] Our objective is now to restructure Hess with the instruments of the insolvency code and to make the company substantially fit for the market.”
Hess has made a loss every financial year since 2009. As a result it requires new loans and other financing options on an ongoing basis. Late last year, it made an initial public offering in the Prime Standard of the Frankfurt Stock Exchange and the company has also sought private investment and bank loans to secure its future.
Hess predicted that it would make a loss in the range of “a high one-digit million euros” and in certain scenarios a loss of up to €12 million in 2013. It said it would require additional investment of €5 million to achieve zero EBITDA.
A statement by the company said the management board has had discussions with more than six interested investors. Becker said he regarded such interest as a confirmation that the Hess group had qualified and motivated employees and technologically attractive, high-quality products.
Till Becker was appointed executive director at Hess AG last month after the company announced its suspicions regarding breaches of accounting regulations which it planned to investigate.
Lighting contacted Hess AG but nobody was available for comment.