Germany

In the middle of the largest cycling boom ever, one of Germany’s largest bicycle factories, Sachsenring Bike Manufaktur GmbH has applied for insolvency, Bike Europe reported. It seems the company cannot get over its troubled MIFA history. Last week Sachsenring Bike Manufaktur was already given an ultimatum by the district council of Mansfeld-Südharz to settle its rental debt for the land and factory. According to local media, District Administrator Angela Klein told the financially troubled bicycle manufacturer to start settling it’s rental debts of almost €100,000 as of December 1.

Creditors of the collapsed German payments company Wirecard have made claims for at least 12.5 billion euros ($14.85 billion), a German court said on Wednesday, Reuters reported. Wirecard, in a dramatic fall from grace and blow to Germany’s reputation, filed for insolvency earlier this year after disclosing that 1.9 billion euros it claimed to hold in accounts was missing. The firm’s assets are in the process of being sold off around the globe. The claims were made against Wirecard’s holding company at a meeting of creditors and the company’s insolvency administrator in a Munich beer hall.

German carmaker BMW said on Tuesday there was no indication that its deal to increase its stake in its joint venture with Brilliance China Automotive would be affected by debt issues at Brilliance's parent, Reuters reported. BMW said in 2018 that it would pay 3.6 billion euros ($4.2 billion) in 2022 for a further 25% stake in the venture with Brilliance - its main joint venture in China - adding to its existing 50% holding and giving it control of BMW Brilliance Automotive (BBA).

Wirecard's insolvency administrator Michael Jaffe on Monday said the payment system provider's technology platform had been sold to Spain's Banco Santander, Reuters reported. “Banco Santander will acquire the technology platform of the payment service provider in Europe as well as all highly specialized technological assets,” Jaffe said in a statement. In a separate statement, Banco Santander said it had agreed to acquire several highly specialised technological assets from the merchant payments business of Wirecard in Europe, to accelerate its growth plans in Europe.

Germany’s economic recovery continued until October but has slowed since August, the Economy Ministry said on Friday, adding that lockdown measures implemented to slow the spread of the coronavirus hit the economy in November, Reuters reported. The Economy Ministry said in its monthly report that the restrictions imposed from the start of November which have seen restaurants, bars and entertainment venues such as cinemas and theatres close meant consumption was taking a hit.

Deutsche Lufthansa AG said it needs to double operations from current levels if it’s to stem losses, delivering a stark assessment of the challenge facing carriers as European governments limit flights with a new wave of coronavirus lockdowns, Bloomberg News reported. Capacity deployment must increase from 25% of year-ago levels at the moment to about 50% in order to meet a goal of returning to positive operating cash flow some time next year, Lufthansa said in an earnings release Thursday.

Germany's Commerzbank swung to a third-quarter loss, it said on Thursday, as it dealt with fallout from the coronavirus crisis and continued a restructuring programme, Reuters reported. Germany’s No. 2 bank, which is waiting for new chief executive Manfred Knof to take the helm in January before deciding on a new strategy, confirmed earlier warnings that it was on course for a full-year loss. Its shares had tumbled around 6% by midmorning in Frankfurt after a slightly bigger than expected third-quarter loss. The shares are down around 27% this year.

The European Securities and Markets Authority has criticised Germany’s financial regulator BaFin and the country’s accounting watchdog FREP for their “deficient” handling of the Wirecard accounting scandal. In a report published on Tuesday, in which the regulator detailed the result of its investigation into the Wirecard accounting fraud, Esma wrote that BaFin and FREP ignored red flags over Wirecard’s financial reporting for years, the Financial Times reported.

Apparel retailer Esprit announced Sunday the insolvency plans it developed for its six German subsidiaries have been approved by creditors and confirmed by the Dusseldorf court, FashionUnited reported. The process allows “a complete restart for the group” enabled by substantial debt forgiveness for the six German subsidiaries. The company said that after the final and official conclusion of the proceedings, expected by the end of the month, Esprit “will go back to normal operations”.

After 14 years of construction and six delayed openings, Berlin’s new airport is due to welcome its first passengers on Saturday. But the timing could not be worse, Reuters reported. The COVID-19 pandemic has plunged the global aviation industry into its deepest ever crisis, and recovery is not expected for at least a couple of years. That has left the new airport, originally called Berlin Brandenburg Airport but now known by its code BER, looking for extra funds to help pay its debts. Built on the site of Schoenefeld airport in former East Berlin, BER has been beset by problems.