Berlin—Global law firm Dentons advised the DRK (German Red Cross) gemeinnützige Krankenhausgesellschaft Thüringen Brandenburg mbH and its subsidiaries on its restructuring through ‘self-administration’ proceedings. Following the signing of a takeover agreement by 1. KMG Kliniken Verwaltungs GmbH (KMG), the insolvency plans are now being submitted to court. The creditors' committee of the DRK Kliniken has unanimously supported the conclusion of the takeover agreement as well as the submission of the insolvency plan in coordination with the company’s  administrator, Dr. Rainer Eckert.

The drafted plans agreed with KMG will be filed at the Mühlhausen Local Court in March. The insolvency plan will provide for a payment by KMG to the company in order to settle the claims of the creditors.

The DRK Kliniken group also includes other companies which, among other things, operate medical care centers and provide services. Their business operations will be transferred to the new owner as part of the transaction.

DRK Kliniken, with its four hospitals in Bad Frankenhausen, Sondershausen, Sömmerda and Luckenwalde, currently employs around 1,530 people. In addition to the four hospitals, it also operates DRK Medizinisches Versorgungszentrum Bad Frankenhausen gGmbH, DRK Medizinisches Versorgungszentrum Teltow-Fläming gGmbH and KH Servicegesellschaft mbH.

The Dentons team, led by Andreas Ziegenhagen and Dirk Schoene, provided comprehensive advice to the clinics in the course of the complex bidding process and the administration proceedings. In addition, Dirk Schoene, together with Christian Eckert of WMC and Stefan Ettelt of Kulitzscher-Ettelt, were appointed as general authorized representatives of the DRK group. After the insolvency filing in December 2018, the Dentons team has supported the local management in all insolvency law issues in connection with the administration proceedings. In the course of the M&A proceedings, initiated in January 2019, numerous interested parties from Germany and abroad expressed their interest in the group of companies.

Andreas Ziegenhagen, Head of the Restructuring, Insolvency and Bankruptcy practice in both Europe and Germany, and his colleague Dirk Schoene, Partner in the Restructuring practice group, said: "We are very happy that once again we have succeeded in finding a trustworthy partner for the continuation of the DRK group as a whole within a short period of time".

Advisors to DRK Kliniken:

Dentons (Berlin):

Restructuring and Insolvency: Andreas Ziegenhagen (Lead Partner), Dirk Schoene (Lead Partner and general authorized representative), Dr. Bernd Schumann (Counsel), Dr. Michael Seppelt (Counsel), Judith Specht (Senior Associate), Dr. Jakob Pickartz (Senior Associate), Dr. Dietmar Schubert (Senior Associate)

Dentons GmbH:

Andreas Braunsdorf (Director)

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