Pfleiderer’s insolvency plan, which was successfully examined by Düsseldorf District Court, will now be voted on at a meeting on September 12.

Implementation of the plan will lead to Pfleiderer’s debt relief and release from financial liabilities, plus the creation of a sound capital base.

The insolvency plan calls for the company’s share capital to be reduced to zero to eliminate the excessive debt in the balance sheet, before the capital is then increased by means of cash and non-cash contributions.

"The new shares will be subscribed to exclusively by Atlantik SA, a holding company specialised in corporate restructuring and based in Luxembourg, which will then be the sole shareholder of Pfleiderer AG," a statement by Pfleiderer AG said.

New shares will not be traded on the stock exchange, with Pfleiderer aiming to have shares delisted. The current owners will no longer hold a stake in the company.

"In the context of the insolvency plan, Atlantik SA has undertaken to take over most of the financial liabilities of Pfleiderer AG from its financial creditors and subsequently to relieve the company of most of its debt."