- Insolvency administrator Prof. Dr. Lucas F. Flöther appointed to review restructuring options.
- Wages and salaries secured for three months through insolvency benefits.
- DOMO Group affected by weak demand, high energy costs, and increased polyamide resin imports.
- Restructuring process began in 2024 after short-term financing talks failed.
Insolvency Filing
DOMO Chemicals GmbH, DOMO Caproleuna GmbH, and DOMO Engineering Plastics GmbH, German subsidiaries of DOMO Chemicals, have filed for insolvency. The local court appointed Prof. Dr. Lucas F. Flöther as the preliminary insolvency administrator to oversee the process.
Business Continuity
Flöther aims to maintain business operations without interruption. He assured that manufacturing and customer deliveries will continue, and wages are secured for the next three months through insolvency benefits, providing financial stability during this period.
Restructuring Efforts
The insolvency administrator will collaborate with creditors and company management to evaluate the financial situation and explore restructuring options. Potential strategies include securing an investor or negotiating a settlement with creditors. The most viable path will be determined in the coming months.
Market Challenges
DOMO Group's German companies are recognized as technology leaders with a skilled workforce and strong customer base. However, they face challenges due to weak demand in the European chemicals sector, high energy costs, and increased imports of polyamide resin, particularly from China.
Background
Headquartered in Ghent, Belgium, DOMO Group produces polymers, engineering plastics, and high-performance fibers for various sectors. The company initiated a restructuring process in 2024 after short-term financing talks failed, leading to the insolvency filings of its German entities.
