[Cologne, ] Schön Klinik, which already operates 17 locations throughout Germany, has acquired the assets of Dominikus-Krankenhaus Düsseldorf-Heerdt GmbH (DKD). The corresponding agreements are now pending approval by German regulatory authorities (Bundeskartellamt) The Düsseldorf Local Court, the court of jurisdiction, has initiated insolvency proceedings in respect of the assets of DKD.
With the help of the insolvency administrator appointed by the court, GÖRG partner Dr. Jörg Nerlich, the sale of the location as an operating hospital has made it possible to retain all of the some 410 employees. According to Dr. Nerlich, “With the experience of the Schön Klinik, the DKD has a good chance of overcoming future challenges to continue to provide patients with first-class medical care. In addition, the creditors of DKD can expect to recover an exceptionally high percentage of their outstanding claims.”
The turnaround specialists were able to keep the hospital in operation from the time insolvency proceedings were initiated, which was an absolutely essential prerequisite for attracting a new owner.
Background
The management of Dominikus-Krankenhaus Düsseldorf-Heerdt GmbH had applied to the court for permission to enter into a voluntary arrangement under the supervision of a court-appointed nominee in early May 2016. The court of jurisdiction approved this motion and appointed Dr. Jörg Nerlich as interim nominee to assist management. When standard proceedings were opened, the court then appointed Dr. Nerlich as insolvency administrator. Managing Director Guido Severin, who had assumed his position hardly ten months earlier, remained in office and continued to operate the company as before together with the restructuring specialist of the law firm Kanzlei Mönig und Partner who had been engaged by the company.
It became necessary to file for insolvency when delays occurred in construction work on the DKD facility that had begun in 2012. This resulted in a significant increase in construction costs, which necessitated refinancing. In addition, ongoing construction work ultimately caused a reduction in the number of beds from initially almost 260 to fewer than 200. This had an extremely negative impact on revenues that the company was no longer able to absorb.
