Kplus Group Applies for Protective Shield Procedure as Insolvency Imminent

Kplus Group Applies for Protective Shield Procedure as Insolvency Looms

Solingen – The Kplus Group, which includes the St. Lukas Clinic in Solingen, has applied for a protective shield procedure due to imminent insolvency. The news came as a shock to employees, as the management informed them about the current economic difficulties on Friday morning. Managing Director Kai Siekkötter explained that the restructuring process is necessary because the hospitals have already generated a deficit of five million euros in the first five months of this year.

The protective shield procedure aims to prevent insolvency by implementing a restructuring plan under judicial control. As part of the plan, the St. Lukas Klinik will be closed, and the specialist departments will be relocated to the houses in Haan and Hilden. Siekkötter hopes to complete the procedure within the next seven months and ensure the hospital’s continued operation and patient care.

Specialist lawyer Stefan Denkhaus, who is overseeing the restructuring, highlighted the advantages of the protective shield procedure. It allows the use of insolvency money and ensures that wages and salaries are paid by the employment agency for three months, providing liquidity of 20 million euros. The procedure also allows for optimization of contracts with suppliers and faster implementation of personnel measures, although redundancies for operational reasons cannot be ruled out.

The protective shield procedure only applies to five of the 14 individual companies in the Kplus Group, and all old people’s facilities are unaffected. The Kplus Group reported a slight financial surplus of 300,000 euros for 2022, but cost increases and uncertain economic conditions have contributed to the current difficulties.

The Kplus Group has previously applied for a 44 million euro structural fund from the state, but the decision is still pending. The original plan to build an extension at the Hilden Hospital and relocate the St. Lukas Clinic in 2026 is also awaiting a decision from the state.

The shareholders of the Kplus Group, the Archdiocese of Cologne and the Catholic parishes, have not provided further funds, leading to discussions with other potential sponsors. In 2022, the St. Augustinus Group in Neuss made a concrete offer to take over Kplus, but no decisions have been made at this time.

Despite concerns about losing the clinic, Siekkötter reassured the public that medical care is not limited by city borders. The St. Lukas Clinic currently treats patients from the district of Mettmann, and the relocation of specialist departments to Haan and Hilden will ensure continued access to medical services.

The Kplus Group’s application for a protective shield procedure reflects the challenges faced by healthcare institutions in maintaining financial stability amidst rising costs and uncertain economic conditions. The outcome of the procedure and the future of the Kplus Group will be closely watched by employees, patients, and stakeholders in the healthcare industry.

Kplus Group Applies for Protective Shield Procedure as Insolvency Looms

By Simone Theyssen-Speich

Solingen. The Kplus Group, which includes the St. Lukas Clinic in Solingen, has applied for a protective shield procedure due to imminent insolvency. The news came as a shock to employees, as the management informed them about the current economic difficulties on Friday morning. Managing Director Kai Siekkötter explained, “We have applied for a protective shield procedure for Kplus Holding.” This procedure also affects the three clinic locations St. Lukas in Solingen, St. Josef in Haan, and St. Josefs in Hilden, as well as the inclusion company Genesis.

The decision to undergo a restructuring process under self-administration was made because the economic planning of the group has been found to have deficits. “In the first five months of this year, the three hospitals affected have already generated a deficit of five million euros,” said Siekkötter. To prevent insolvency, proactive measures are being taken at an early stage. “Otherwise, an insolvency administrator could possibly close the facilities.”

The core of the restructuring plan is to close the St. Lukas Klinik location and relocate the specialist departments to the houses in Haan and Hilden. Siekkötter hopes to complete this process within the next seven months and exit the legal protective shield procedure at the beginning of next year. He assures that the hospital will continue to operate and that patient care is fully guaranteed. “We are still solvent, but as managing director, I have to consider future liquidity.”

Specialist lawyer Stefan Denkhaus, who is overseeing the restructuring as a general agent, explains the advantages of the protective shield procedure. Since the court has recognized the impending insolvency, insolvency money can be used, and wages and salaries will be paid by the employment agency for three months. “That gives us 20 million euros in liquidity,” says Siekkötter. “Contracts with suppliers can also be optimized under this protective shield procedure,” adds Denkhaus. However, personnel measures may be necessary, and redundancies for operational reasons cannot be ruled out. “Nursing, functional service, and doctors are excluded, but we have to assess other areas selectively,” says the managing director. The five affected individual companies employ a total of 1400 people, with 500 of them working at the St. Lukas Klinik.

It is important to note that the protective shield procedure only applies to five out of the 14 individual companies in the Kplus Group. All nursing homes, including the St. Joseph old people’s home, St. Joseph residential park, and St. Lukas nursing home in Solingen, are not affected.

In May, the Kplus Group reported a slight profit of 300,000 euros for the year 2022. However, cost increases of 10 to 15 percent are now offsetting revenue growth of only 3.5 percent. Siekkötter criticizes the uncertainty of future economic conditions and directs his criticism towards politics.

The group had previously submitted a structural fund application of 44 million euros to the state in 2021, but it is still awaiting a decision. The state’s approval is crucial for the original plan to build an extension at the Hilden Hospital and relocate the St. Lukas Clinic there in 2026. “Unfortunately, we did not manage to align the hospital planning with this project. Now we cannot wait with the decisions until a new building is in Hilden.”

Siekkötter tries to alleviate concerns about losing the clinic in Solingen. “City borders are irrelevant when it comes to medical care. Already, 65 percent of the strokes treated in the St. Lukas Clinic’s stroke unit come from the district of Mettmann.”

The shareholders of the Kplus Group are the Archdiocese of Cologne and the Catholic parishes. However, they were not willing to provide further funds, according to lawyer Stefan Denkhaus. Therefore, discussions are underway with other potential sponsors for a new solution. In autumn 2022, the St. Augustinus Group in Neuss made a concrete offer to take over Kplus, but Siekkötter emphasizes that speculation should not unsettle the workforce at this point in time.

The protective shield procedure, which involves restructuring under self-administration to prevent insolvency, is only permitted by the court if there is an impending insolvency. The court has appointed specialist lawyers as trustees to monitor the proceedings. Lawyer Stefan Denkhaus, together with Kplus Managing Director Kai Siekkötter, takes on the tasks that an insolvency administrator would handle in insolvency proceedings. Additionally, the court has set up creditors’ committees with employee representatives, the works council, and bank representatives.

What are the potential implications of the protective shield procedure for the employees and patients of the Kplus Group, particularly regarding the closure of the St. Lukas Clinic

Solingen – The Kplus Group, which includes the St. Lukas Clinic in Solingen, has recently filed for a protective shield procedure in anticipation of insolvency. The announcement came as a surprise to employees, who were informed about the challenging financial situation on Friday morning. Managing Director Kai Siekkötter explained that the restructuring process is necessary due to the hospitals’ deficit of five million euros in the first five months of this year.

The protective shield procedure aims to prevent insolvency by implementing a restructuring plan under judicial supervision. As part of the plan, the St. Lukas Klinik will be closed, and the specialized departments will be relocated to the facilities in Haan and Hilden. Siekkötter hopes to complete the procedure within the next seven months to ensure the hospital’s continued operation and patient care.

Specialist lawyer Stefan Denkhaus, who is overseeing the restructuring, highlighted the benefits of the protective shield procedure. It allows for the use of insolvency money and ensures that wages and salaries are paid by the employment agency for a period of three months, providing liquidity of 20 million euros. The procedure also facilitates the optimization of contracts with suppliers and faster implementation of personnel measures, although layoffs for operational reasons cannot be ruled out.

It should be noted that the protective shield procedure only applies to five of the 14 individual companies in the Kplus Group, and all old people’s facilities remain unaffected. The Kplus Group reported a slight financial surplus of 300,000 euros for 2022, but rising costs and uncertain economic conditions have contributed to the current difficulties.

The Kplus Group has previously applied for a 44 million euro structural fund from the state, but the decision is still pending. The plan to construct an extension at the Hilden Hospital and relocate the St. Lukas Clinic in 2026 is also awaiting a decision from the state.

The shareholders of the Kplus Group, the Archdiocese of Cologne and the Catholic parishes, have not provided additional funds, leading to discussions with other potential sponsors. In 2022, the St. Augustinus Group in Neuss made a concrete offer to take over Kplus, but no decisions have been made at this time.

Despite concerns about the closure of the clinic, Siekkötter reassured the public that access to medical care is not limited by city borders. The St. Lukas Clinic currently serves patients from the district of Mettmann, and the relocation of specialized departments to Haan and Hilden will ensure continued availability of medical services.

The application for a protective shield procedure by the Kplus Group highlights the challenges faced by healthcare institutions in maintaining financial stability in the face of rising costs and uncertain economic conditions. The outcome of the procedure and the future of the Kplus Group will be closely monitored by employees, patients, and stakeholders in the healthcare industry.