Germany-based billing and charging software vendor Orga Systems has initiated a restructuring plan and applied for preliminary insolvency proceedings at the Administrative Court of Paderborn. Jeremy Cowan reports.
The Administrative Court of Paderborn has appointed a preliminary insolvency administrator, in a decision dated April 1, 2015. VanillaPlus understands that, with the administrator, “preliminary steps” have been taken in order to stabilise the company.
A company spokesman was only able to tell VanillaPlus that, “Orga Systems’ business operations will continue in their entirety, with the aim of ensuring that there will be no impact on ongoing customer projects.” The need to “fully satisfy the interests of our customers and partners” is also being emphasised.
Orga Systems reported a net loss of €32.3 million on its balance sheet in 2013, following a loss of €346,000 in 2012. Reports in German media suggest that a loan facility of €25 million would not be extended by the banks beyond March 31, which triggered the bankruptcy application.
(Also see: Wolfgang Kroh appointed new chief executive of Orga Systems.)
The company has 650 employees worldwide, 200 of whom are based at its headquarters in Paderborn. A total of 60 jobs went last September in a restructuring exercise. The future of these remaining jobs now lies in the hands of the Düsseldorf attorney Frank Kebekus, who it is reported locally has been appointed as provisional liquidator by the Paderborn District Court.
Orga Systems will continue to operate during this period and salaries in Germany are expected to be covered for three months. The impact of this news on its overseas operations is not yet known. The company has offices in 11 other locations, including in Berlin, Buenos Aires, Calcutta, Kiev, Rio de Janeiro, and Rome.
Orga systems was founded in 2003 when the parent company split into two creating Orga Systems and SIM card maker, Orga Kartensysteme.
