PaperlinX’s German paper merchanting operation (PaperlinX Deutschland GmbH) and its immediate parent entity commenced administration processes on 19 October 2015. A German Court approved applications made by the local Director of these entities for them to enter into ‘Debtor in Possession’ insolvency proceedings.
The paper merchanting operation in Germany has been trading unprofitably. The decision to file for insolvency proceedings was taken by the local Director given that attempts to divest this division over the course of the last few months have been unsuccessful to date.
According to Paperlinx, these events in Germany will have no impact on the trading operations of PaperlinX’s businesses in Australia, New Zealand and Asia.
