paragon AG completes period of insolvency
- Termination of insolvency proceedings on 1 June 2010
- Full focus on role as a supplier to the automotive industry
- Date set for financial press conference and annual general meeting
As expected, paragon AG has completed the phase of insolvency. By decision of 28 May 2010 the Paderborn District Court terminated insolvency proceedings on 1 June 2010. This has been made possible by the acceptance of the insolvency plan at the creditors' meeting on 16 April 2010. "This step has now been formally concluded and it appears that the completion of the insolvency is having a liberating effect on the company," comments Managing Director Klaus Dieter Frers. After an agreement was reached with the banks, the paragon board initiated an insolvency plan on 5 October 2009 in order to finish the negotiations. Key customers remained loyal even after insolvency proceedings officially opened on 1 January 2010. "I would like to take this opportunity to thank all the car manufacturers that had faith in our rehabilitation and which have continued to place orders with us even during this period of insolvency," stresses Frers. In the future, paragon will be focusing fully on the development, production and marketing of electronic solutions for the automotive industry. The company is putting great effort into the development of new products in the existing fields of air quality, drive trains, acoustics and cockpits, stepper motors as well as media interfaces and controls. These will be complemented in the future by electronic solutions for new drive technologies. The first positive results in this area include the innovative startstop sensor, which can be used in particular in hybrid vehicles, and a display system for electric vehicles. "I have no doubt that our engineers will be developing further applications in these fields and generating more innovative products," notes Frers.
According to the agreement Chief Restructuring Officer Andrew Seidl leaves the company after the termination of insolvency proceedings; the Supervisory Board would like to thank him for his personal commitment in the past months.
paragon will be issuing all outstanding financial reports as soon as possible. The company has set itself a tight schedule in this respect together with the auditors. A joint press conference on the 2008 and 2009 financial years as well as the short 2010 financial year (period of insolvency) will be held on Friday, 13 August. The Annual General meeting will be held on Wednesday, 29 September in the usual location - Delbrück Town Hall.
About paragon AG
Listed in the Prime Standard segment of Deutsche Börse in Frankfurt am Main, paragon AG develops, produces and distributes pioneering automotive electronics solutions. The portfolio of this direct supplier to the automotive industry includes products in the segments of air quality, drive systems, acoustics, cockpit systems, stepper motors, media interfaces and control systems. One of its standout products is the AQS air quality sensor, the clear global market leader. With headquarters in Delbrück (North Rhine-Westphalia), the company also has sites in Suhl (Thuringia), Nuremberg (Bavaria) and St. Georgen (Baden-Württemberg). In the 2010 financial year paragon aims to generate revenue in excess of €58 million with more than 300 employees.