Faller bankruptcy update

On Friday, 28th August 2009 Gebr. FALLER GmbH has filed a petition in bankruptcy at the Inferior Court of Villingen-Schwenningen. Dr Volker Grub was duly appointed interim judicial receiver in bankruptcy.Grub is willing to reorganize FALLER.

Gütenbach / 2nd September 2009 – The appointed interim receiver in bankruptcy, Dr. Volker Grub, considers FALLER to be able to assume a sustainable development. He said that FALLER is a major brand, comparable with Märklin.

Even though the sales figures have decreased, FALLER remains the undisputed market leader for model railways decoration.

That means house and building models, miniature figures and terrain construction materials.

To reorganize FALLER it is necessary to modernize radically the production processes and manufacturing plants.

To this end, it is essential to perform a concentration of staff and premises.

Dr. Grub pointed out that FALLER has still a difficult course to follow.

All persons involved, shareholders, employees, trade union, customers, banking houses, the staff pension association as well as all other creditors will have to cooperate in that task.

It will be unavoidable to dismiss some staff.

However, the production site of Gütenbach will be maintained.

The family of owners rallied round Mrs. Ursula Herbertz is prepared to commit itself one more time financially.

It is Grub’s intention to submit a financial rescue plan intended to settle the outstanding liabilities amounting to some nine million euros.

Grub proposes to submit this very year the financial rescue plan to the vote of a general assembly of creditors, so as to be able to leave again the bankruptcy procedure early in 2010.

For any further information, please turn to: Dr. Volker Grub