Deal Report: Spencer West supports successful cross-border rescue of DOMO and OFLOR
Spencer West has supported the team at PLUTA in the successful restructuring and sale of the DOMO and OFLOR businesses, helping to preserve a substantial Polish operation and safeguard more than 200 jobs.
The transaction, led by Dr. Christian Kaufmann and Alexander Bortfeldt of PLUTA, involved a complex combination of insolvency proceedings, real estate assets, financing arrangements and stakeholders across multiple jurisdictions.
Spencer West advised on the Polish aspects of the transaction and supported the practical implementation of a cross-border insolvency under Regulation (EU) 2015/848, the EU Insolvency Regulation.
A key challenge was navigating the interaction between the powers granted to the German insolvency administrator under the law governing the insolvency proceedings and the recognition, scope and practical application of those powers in Poland.
This required careful coordination of the legal and operational issues surrounding the administration and sale of the Polish business, ensuring that the transaction could be implemented effectively while meeting the requirements of both jurisdictions.
Preserving a viable business
The Polish operations represented a substantial part of the overall business, employing more than 200 people.
The transaction was therefore about considerably more than the sale of assets. An important objective was to preserve a viable operating business, protect employment wherever possible, and maintain continuity for customers and business partners.
Cross-border insolvencies can present significant challenges because legal solutions need to work not only in principle, but also across different legal systems, courts, registries and operating environments.
Questions around corporate authority, management powers, asset disposals and implementation can require close coordination between the insolvency law of the jurisdiction in which proceedings have been opened and the mandatory rules applying where the business and its assets are located.
Cross-border collaboration in practice
The successful outcome demonstrates the importance of close collaboration between insolvency administrators, restructuring professionals, investors and legal advisers across jurisdictions.
It also demonstrates how the European cross-border insolvency framework can be used in practice to support restructuring solutions that preserve viable businesses, maintain continuity and protect jobs.
Dr Artur Bunk at Spencer West, who advised on the matter, said:
“Cross-border restructurings require more than an understanding of the legal framework in each jurisdiction. The real challenge is making those frameworks work together in practice so that a transaction can be implemented effectively. This was particularly important here given the scale of the Polish operation and the number of jobs dependent on its successful continuation.”
Spencer West congratulates Dr. Christian Kaufmann, Alexander Bortfeldt and the wider PLUTA team, together with all other advisers involved, on the successful outcome.
