Fintyre’s insolvent businesses: All unpaid employees now receiving benefits

All employees of the Fintyre Group’s 16 subsidiary companies in Germany who didn’t receive their wages or salaries for January have now received insolvency benefits – which Fintyre will ultimately pay for, one way or another.

A spokesman for Miguel Grosser, the insolvency administrator appointed to the case, told our sister publication Reifenpresse.de how Germany’s Federal Employment Agency (Bundesargentur Für Arbeit) will recover the cost of these benefits from Fintyre. Sebastian Brunner explained that each employee who claims insolvency benefits must sign a declaration of assignment (Abtretungserklärung) form. This legally binding document transfers their claims for payment from the Federal Employment Agency to a creditor, in this instance Deutsche Bank.

The insolvency benefit is then paid out in the form of a loan that the Federal Employment Agency will offset once bankruptcy proceedings against the Fintyre companies commence. All money that Deutsche Bank lends, as well as interest and processing charges, will be repaid from the insolvency estate.