Debtor company MFC Corporate Services was running the commercial business which was linked to various financing models ("structured trade financing") in the sectors steel, paper and wood, according to KSV 1870. The course of things with German Pellets: After first contact was made in 2005, the debtor respectively other subsidiaries became the main business partners of the German Pellets group.
In 2016, insolvency proceedings were initiated in Germany regarding the assets of the German Pellets group. Due to close economic linkage with the group, the debtor firm had to discontinue its operating business at the beginning of 2017, according to the insolvency administrator. More than a year later, after reorganization efforts failed, also in Austria insolvency proceedings were initiated concerning the assets of MFC Corporate Services GmbH.
At this point in time, it cannot be estimated yet up to which extent the insolvency administrator will have to accept the declared liabilities since the examination of claims by the insolvency administrator was not completed on the date of the examination hearing, KSV 1870 reports.
Next to bank claims, the liquidator must examine the existence of the claims that were lodged by the insolvency administrator of the insolvent companies associated with the German Pellets group amounting to €150 million in detail.
The insolvency administrator has been dealing with the extremely complex bankruptcy-like liquidation of the debtor company ever since the opening of the insolvency proceedings. The essential asset of the debtor is a litigation-pending claim against an insurance company of approximately €73 million. According to the debtor, this claim resulted from damages to the company caused by the abstracting respectively embezzling of pellets from around 40 warehouses.
If or to what extent the creditors concerned will receive a quota is, according to the KSV 1870, especially dependent on the validity of the claims of German Pellets on the liabilities side, and on the enforceability of the claims in the pending insurance proceedings on the assets side.
