The partners of GT Restructuring (GTR), Greenberg Traurig's restructuring unit in Germany, were appointed in relation to the comprehensive restructuring process of care service provider DOREAFAMILIE. The Local Court of Berlin-Charlottenburg assigned Gordon Geiser, Jesko Stark and Benedikt de Bruyn as provisional trustees and provisional insolvency administrators in the insolvency proceedings filed for by DOREA GmbH and a number of its subsidiaries.
For the parent company DOREA GmbH as well as for two other companies, debtor-in-possession proceedings were filed, for DOREA GmbH in form of a so-called protective shield proceeding. In detail, GTR-partner Gordon Geiser will lead the protective shield proceeding for DOREA GmbH. In addition, the Local Court Berlin-Charlottenburg appointed Geiser and his partner Stark as trustees in the two other debtor-in-possession proceedings. As provisional trustees, they monitor the proceedings in the interests of the creditors.
In addition to the three debtor-in-possession proceedings, further restructuring proceedings were initiated for a further 22 operating companies of the DOREA Group. Here, Geiser, Stark and de Bruyn have been appointed as provisional insolvency administrators. No proceedings are underway for the remaining companies of the group. The goal of the process is to be able to continue operating a large number of facilities in the future. The DOREA Group plans to complete the restructuring by t fall 2023.
DOREA-Group, like the care sector in general, is under economic pressure due to increased costs for energy, rent and materials. These cost increases are not provided for the budgets negotiated annually with the nursing care insurance funds and cannot be refinanced from current revenues. In the wake of the COVID-19 pandemic, occupancy rates and thus revenues have fallen sharply at many nursing homes.
DOREA-Group, operating under the DOREAFAMILIE brand, is one of the largest private care service providers in Germany. The group focuses on traditional care for the elderly, with 76 inpatient facilities, 17 locations with assisted living, and nine outpatient care services. Approximately 5,500 employees in total work for the group, which provides care for around 7,500 people. Annual sales in 2022 were approximately 280 million euros.
Provisional trustees:
DOREA GmbH and Margaretenhof GmbH: Gordon Geiser, Partner, GT Restructuring, [photo] (restructuring/insolvency law)
DOREA Beteiligungsgesellschaft mbH: Jesko Stark, Partner, GT Restructuring (restructuring/insolvency law)
Provisional insolvency administrators:
Gordon Geiser, Jesko Stark and Benedikt de Bruyn (all Partners at GT Restructuring)
About Greenberg Traurig: Greenberg Traurig, LLP has more than 2650 attorneys in 44 locations in the United States, Europe and the Middle East, Latin America, and Asia. The firm is a 2022 BTI “Highly Recommended Law Firm” for superior client service and is consistently among the top firms on the Am Law Global 100 and NLJ 250. Greenberg Traurig is Mansfield Rule 5.0 Certified Plus by The Diversity Lab. The firm is recognized for powering its U.S. offices with 100% renewable energy as certified by the Center for Resource Solutions Green-e® Energy program and is a member of the U.S. EPA’s Green Power Partnership Program. The firm is known for its philanthropic giving, innovation, diversity, and pro bono. Web: www.gtlaw.com.