As part of the steps agreed upon in the insolvency plan, nearly €900m in liabilities held by Pfleiderer AG will be forgone.

Given the restored earnings power of the Pfleiderer Group, the approximately €310m in financial liabilities on the company’s books will correspond to debt levels typically seen in the market, says Pfleiderer.

At the same time the company says it will have adequate equity of about €165m, representing a solid foundation for the company to finance itself on a sustainable, independent basis.

Pfleiderer has also carried out a sweeping reorganisation of its business activities since the end of 2010. As part of this process the money losing businesses in the US and Canada as well as operations in Europe and activities in Russia were sold.

Following restructuring the group consists of the profitable Business Center Western Europe, particularly the production and sales companies in Germany, and continues to hold a majority stake in Pfleiderer Grajewo SA which has a strong market position in Poland’s engineered wood market.