Up in Smoke

Selling the Ashes of German Pellets

German pellets.Dominik Obertreis
German Pellets at work in Texas.
  • Why it matters

    Why it matters

    Money paid by a buyer for the embattled company would mostly be passed on to banks and suppliers, which demanded real estate or machinery as collateral in case their loans were not paid.

  • Facts

    Facts

    • German Pellets is headquartered in Wismar with production sites in the United States.
    • The company filed for bankruptcy on February 10.
    • As many as 17,000 investors are now seeking millions.
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  • Audio

    Audio

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Creditors of bankrupt German Pellets, a maker of wood products used in heating, have decided the company should be sold as a total package rather than in pieces.

While a package sale could help employees keep their jobs, investors would have only a remote chance of seeing their money someday.

The decision came after a secret Hamburg meeting between representatives of the creditors and bankruptcy administrator Bettina Schmudde, of the law firm White & Case.

At the meeting, Ms. Schmudde told creditors that several domestic and international investors had made binding takeover offers. She didn’t identify the bidders or give details about their offers.

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