29.06.2009

Federal government approves insolvency loan for Quelle

Berlin/Fürth, 29 June 2009. During today’s session in Berlin, the Interministerial Guarantee Committee has approved an insolvency loan for Quelle GmbH. The negotiations between the interim insolvency administrators and the management of Quelle GmbH with the federal government, the States of Bavaria and Saxony, and bank representatives to provide the company with a secure financial basis were closed with a positive decision late on Monday evening (29 June 2009).

Following an in-depth examination of the documents supplied by the company, the Guarantee Committee came to the conclusion that the criteria for the credit had been fulfilled and sufficient collateral was available. Quelle is now in a position to benefit from a €50 million insolvency loan financed by the KfW Bankengruppe and the LfA Förderbank Bayern. The decision must still be ratified by the EU Commission in Brussels, which has announced it will carry out a short-notice assessment of the case.

The credit is a precondition for the reanimation of the Valovis Bank’s so-called ‘factoring programme’ which is intended to supply Quelle with the liquidity it requires to operate. The most important short-term goal is to stabilise business operations at Quelle GmbH and thereby create a sound basis for developing a rescue plan as part of the insolvency proceedings filed on 9 June 2009.

As the session concluded, Dr Konrad Hilbers, CEO of Quelle GmbH, the interim insolvency administrator of Quelle GmbH, Dr Klaus Hubert Görg, and Marc Sommer, CEO of Primondo and Chairman of the Supervisory Board of Quelle GmbH, thanked all of the political decision-makers and the others involved in the process for their constructive attitudes during their examination of the application.

Quelle manager Dr Konrad Hilbers said of the decision: “Our employees and customers have hoped down to the wire that they would get a fair chance, and now they have received it. We would like to thank the politicians involved, the banks, and of course our loyal service providers. We will do everything in our power during these interim insolvency proceedings to make use of this chance we have been offered and successfully re-establish Quelle as a viable business. We call on our customers to remain true to Quelle and continue to enjoy our products and services.”

“All of those involved invested a great deal of energy to secure ongoing business operations at Quelle,” said Dr Klaus Hubert Görg. “And now, thanks primarily to our creditors, we are in a position where we can – subject to the approval from Brussels – concentrate totally on our daily tasks. Our contract partners have shown their loyalty to Quelle, which was impressively illustrated during the printing of our new catalogue. They took me at my word, at a not inconsiderable financial risk to themselves.”

Primondo CEO Marc Sommer explained: “Within the overall Primondo strategy, Quelle made a positive development in recent years: moving away from traditional mail order and towards becoming a modern Internet-based home shopping provider with a strong international business component. This has helped Quelle to develop a positive outlook that has been confirmed by today’s decision.

I am convinced that this company is fit to face the future.”

Press contact:
Manfred Gawlas
Quelle Press Spokesman
Nürnberger Straße 91–95
90762 Fürth
Germany
Telephone: +49 (0)911 14-22121
Fax: +49 (0)911 14-24330
Mobile: +49 (0)151 17 15 90 26
E-mail: manfred.gawlas@quelle.de

Thomas Schulz
Spokesman for the interim insolvency administration of Arcandor AG
Telephone: +49 (0)221 400 73-85
Fax: +49 (0)221 400 73-88
Mobile: +49 (0)171 868 64 82
E-mail: schulz@rw-konzept.de

Arcandor AG
Group Communications
Gerd Koslowski
Telephone: +49 (0)201 727 25 38
Mobile: +49 (0)160 537 28 49
E-mail: gerd.koslowski@arcandor.com