Leuna Polyamid: Insolvency Proceedings Initiated

“There are not enough funds in the insolvency estate to fully finance the necessary decommissioning and dismantling of the vast chemical industrial site,” explains the insolvency administrator. “An insolvency administrator is solely obligated to the creditors and cannot and must not encumber the insolvency estate to their detriment,” says Flöther. “That is why insolvency law provides for what is known as ‘release’ in such cases.” 

Release means that certain assets are no longer part of the insolvency estate and are therefore no longer administered at the expense of the insolvency estate. Against this backdrop, the insolvency administrator has declared the release of a large portion of the real estate and facilities. These now revert to the debtor, i.e., Leuna – Polyamid GmbH. However, this does not mean that safety or environmental obligations are waived. “Because the debtor is not financially capable of doing so, the State of Saxony-Anhalt is assuming responsibility for ensuring safety as part of hazard mitigation,” said Flöther.

Management announced as early as the beginning of September that the search for an investor had failed and had begun preparations for decommissioning. The last batches of product will leave the facility in the first few days of October. Work to secure, drain, and clean the facilities will then begin.

The approximately 440 employees will now receive their notices of termination in October, which will generally take effect at the end of January. During this period, the employees will continue to be deployed as part of the decommissioning work and will be paid from the insolvency estate.

Leuna – Polyamid GmbH had taken over the business operations of the insolvent DOMO Caproleuna GmbH in April. After the costs for energy and raw materials had risen dramatically again since February as a result of the war in Iran, the situation for the company had worsened significantly. In April, management filed for insolvency proceedings under self-administration.

The company manufactures basic organic products (e.g., caprolactam, phenol, acetone) and polyamide 6 as its main product, also known as nylon 6. Polyamide 6 is a versatile engineering plastic characterized by high strength, good toughness, and excellent processability. It is used, among other things, in the automotive industry, the electrical and electronics sectors, and in high-quality consumer goods for lightweight, durable, and high-performance components.