EBERSTADT, HESSE, GERMANY (25 April 2019) – Pflege- und Therapiezentrum Volpp, a nursing home in the Eberstadt district of Darmstadt, now has a new operator. The insolvency administrator, Fabio Algari, was able to sell the nursing home to operator ArcheNoris gGmbH, safeguarding the long-term future of the home in Eberstadt. FalkenSteg Corporate Finance’s Healthcare team had sole responsibility for managing the investor recruitment process.
Darmstadt’s local insolvency court imposed preliminary insolvency administration on 23 October 2018, before opening the insolvency proceedings on 1 January 2019 and appointing Fabio Algari as insolvency administrator. Algari – a partner at Frankfurt-based, Germany-wide law firm hww – had been successfully working with his team since 23 October to keep the nursing home open, saving the jobs of its sixty-five employees and allowing its eighty-five residents to remain on site. The new operator is ArcheNoris, a non-profit operator affiliated with the Diakonie, a Protestant church-backed charity organisation. 1 May 2019 will mark the start of ArcheNoris’ takeover of the facility via a business asset sale, following a series of successful negotiations, including with the City of Darmstadt and the responsible care institutions. The assistance of M&A consultancy FalkenSteg, which specialises in situations of this nature, was also very helpful in this process.
“After long negotiations with a whole host of prospective operators, I’m delighted that we’ve now managed to find a suitable operating solution for all concerned. The new operator is not only taking over the nursing home from the insolvency administration, but also acquiring property from the Frankfurt am Main Workers’ Welfare Association (Arbeiterwohlfahrt, Kreisverband Frankfurt am Main e.V.). It was certainly challenging to achieve such a successful result while balancing the interests of three different parties”, Algari says. From the outset, the previous operator had hardly made any investments in the property, leaving a lengthy and costly investment to-do list. “I’d like to say a huge thank you to the staff and management, who have displayed exceptional commitment, helping to ensure the residents’ welfare and, in turn, playing an instrumental part in keeping the home running.”
“Sincere thanks are also owed to the institutions involved in overseeing and regulating the process. They always kept a critical eye on the actions we were taking, but did so with a measured and understanding approach to the situation, recognising that it affected an insolvent nursing home that was and continues to be worth preserving as its own entity”, Algari adds. In its current form, ArcheNoris traces its origins to the cities of Würzburg and Nuremberg, and the non-profit manages a number of nursing homes in Bavaria. In the state of Hesse, ArcheNoris operates a retirement and nursing home in Gross-Gerau and one in Mörfelden-Walldorf. In addition, a new retirement and nursing home is currently being built in the Hesse municipality of Seeheim-Jugenheim.
Via a business asset sale transferring ownership of the Volpp home, the new operator/investor will only be taking over the company’s business operations and not its liabilities. This deal structure aims to provide an incentive to keep the distressed business running and its employees in work. “Not to mention the fact that a nursing home like this is vital for communities like Eberstadt when you consider factors such as demographic trends in Germany”, Algari explains.
hww hermann wienberg wilhelm
hww hermann wienberg wilhelm is a firm specialising in legal consulting, restructuring, insolvency administration and receivership. hww has more than twenty offices in Germany, along with its own international network. hww insolvency administrators have worked on thousands of insolvency proceedings in Germany.
For more information, visit www.hww.eu