Seal 1818, InovisCoat and FilmoTec in insolvency

[fs999]

Sad news. Since February 1st Seal 1818 GmbH, InovisCoat GmbH and FilmoTec GmbH are in insolvency.

From www.insolvenzbekanntmachungen.de

 

[Don_ih]

From their Instagram:

Dear Film Community,

It has come to our attention that discussions have started to spread across forums regarding the insolvency of Seal 1818 GmbH, FilmoTec GmbH and InovisCoat GmbH.

We would like to allay any concerns and stop any rumours.

Today, the courts have officially agreed our plans for an organised management financial restructuring, something that has been months in the planning and that we have committed a large investment to support.

We decided to do this so that we can quickly and successfully introduce new working practices, customers and products; which would have been challenging or impossible, due to legacy issues and agreements, that prevented the company from trading the way it needed to (including working with our own ORWO name and Logo, as well as releasing our full range of products under our brand).

We have recently teased the release of new film stocks and we can now confirm that our new colour cine film will be released in July, with our new black and white 100 ASA film coming before that — with shipping expected in April. More information on each of the stocks and how to pre-order will be coming very soon.

This is a brand-new and incredibly exciting chapter in ORWO’s rich history, and we are so excited to develop the company and brand that we are all so passionate about.

Welcome to the analogue revolution.

Best wishes,

The ORWO Team.

Expand the quote and read it.

 

[halfaman]

A legal insolvency procedure on court means that you have a debt beyond what you can pay with the value of all your assets and that you can't renegociate it by your own. It is not a "death sentence" but it is neither a "good" thing...

I hope everything ends well.

 

[Sal Santamaura]

Apparently Bergger film is coated by InovisCoat. InovisCoat's financial situation might have something to do with why "expected by" dates for out-of-stock Bergger films have been slipping continuously for a long time. Or, conversely, perhaps pandemic-related delays in production are responsible for both the lack of Bergger films and InovisCoat's bankruptcy.

Does anyone who knows what's happened (and can share without violating an NDA) have the real explanation?

 

[pentaxuser]

Does anyone who knows what's happened (and can share without violating an NDA) have the real explanation?

Yes, Sal, as things stand the announcement asks more questions than it answers For instance aren't there possible consequences for ADOX films and paper as well?

pentaxuser

 

[AgX]

Adox meanwhile got their own production scale emulsion-making and coating facilities.

 

[AgX]

Does anyone who knows what's happened (and can share without violating an NDA) have the real explanation?

Of course I have been following over the last years what has been going on behind scenes, but meanwhile on this forum are too many with fanboy or know-it-better attitudes so that I refrain to comment.

 

[pentaxuser]

Adox meanwhile got their own production scale emulsion-making and coating facilities.

Ah, thanks AgX I hadn't realised that Adox do not rely on InovisCoat so good news. So as users of film and paper and assuming the worst i.e. that Inoviscoat will go out of business, what products might we expect to be affected?

pentaxuser

 

[Patrick Robert James]

What at first sounds like bad news could in fact be really good news.

 

[mshchem]

Maybe this could be a boost for Adox?? Is there anything positive that could come from this?

 

[markjwyatt]

Makes sense. I was wondering why Freestyle has basically listed Bergger Pancro 400 (and some B&W chems) as "Dec 31st" (basically meaning- "we do know when or if we will get this again, but for now we will keep the product listing intact"). Could be an issue for Rollei IR400 and likely other films. I hope they get this sorted out.

 

[cmacd123]

a reorganization can be anything from wiping out unneeded sub firms, to complete close down. I have seen many firms do this to force an exchange of shares, where one firm takes over another. to move an organization for one legal type to another, or move the incorporation to another jurisdiction. The applicable laws can be invoked even if there is A overabundance of funds.

we will have to wait and see. I still shake my Head in that 1) InovisCoat seems to only make colour stock for the likes of Lomography, where they don't have any products with a "Normal" result. and 2) I don't know if anyone who is spending the money to make a full motion picture would trust to buy a colour film from an unknown - and untried source. (perhaps for Music Video type productions where weird results are part of the desired look)

the only other thing I get out of this is that UN54 is probably Toast. to be replaced by a new product much like N74 was replaced by N75.

 

[cmacd123]

OH and Seal 1818 GmbH seems to be the holding company of the other two.

 

[AgX]

Could be an issue for Rollei IR400 and likely other films.

No, the Rollei IR 400 was a conversion by Maco of a film from Agfa, which Agfa sad enough cancelled a few years ago. It was not related to Inoviscoat.

 

[markjwyatt]

No, the Rollei IR 400 was a conversion by Maco of a film from Agfa, which Agfa sad enough cancelled a few years ago. It was not related to Inoviscoat.

I think it is still being produced, but not by Agfa. I have some older (exp. 2015- last of the Agfa batch) IR400 which was produced in Belgium. The new stuff is produced in Germany I thought.

 

[pentaxuser]

So it was sad news on #1 but apparently good news in #2 where insolvency, whatever that means in law, was a means of a kind of phoenix rise from the ashes from something called insolvency but appears not to be what I understand to be the meaning of insolvency

Confused? Well I certainly am but just in case it is only me, can others explain in simple terms if possible, the link between insolvency and the seemingly good news from the announcement in #2?


Thanks

pentaxuser

 

[AgX]

Insolvency just is the literal meaning: that there is no cash to pay the creditors. With creditors in the widest sense, meaning also suppliers, employees, the state etc.

In this legally regulated state the main idea is to keep assets together and find a solution for the business to keep afloat and to pay the creditors. This hardly is to achieve as otherwise already the respective investors would have come aboard before. Thus such typically ends in a small solution with a part of a business staying afloat or otherwise a complete dissolving of the business to earn money to pay the creditors.

 

[pentaxuser]

Insolvency just is the literal meaning: that there is no cash to pay the creditors. With creditors in the widest sense, meaning also suppliers, employees, the state etc.

In this legally regulated state the main idea is to keep assets together and find a solution for the business to keep afloat and to pay the creditors. This hardly is to achieve as otherwise already the respective investors would have come aboard before. Thus such typically ends in a small solution with a part of a business staying afloat or otherwise a complete dissolving of the business to earn money to pay the creditors.

Thanks AgX and what you describe above sounds like a plan to get out of insolvency but is quite different to the announcement which sounds all "good news" and presumably contains a lot of marketing and promotional "good news " speak

It may not be a lie but doesn't describe the full reality - a bit like describing an early morning execution by hanging as a solution to being able to not worry about where your next meal will come from.

Can we be sure that these plans and predictions in the announcement will result in them coming true?

pentaxuser

 

[cmacd123]

this article talks about both restructuring and reorganization. https://www.investopedia.com/terms/r/reorganization.asp based on the US model.

this one talks about all the various ways and whys that a company could restructure. https://blog.vantagecircle.com/organizational-restructuring/ as you can see several may apply to the firms involved here.

 

[AgX]

Keep in mind that german legislaton may differ from the US one, as a lot other matters. Already a firm managmemt may vary in structure strongly from US structures. Though concerning insolvency one US idea actually was taken over.

 

[BAC1967]

This was on Facebook today

Dear Film Community,

It has come to our attention that discussions have started to spread across forums regarding the insolvency of Seal 1818 GmbH, FilmoTec GmbH and InovisCoat GmbH.

We would like to allay any concerns and stop any rumours.

Today, the courts have officially agreed our plans for an organised management financial restructuring, something that has been months in the planning and that we have committed a large investment to support.

We decided to do this so that we can quickly and successfully introduce new working practices, customers and products; which would have been challenging or impossible, due to legacy issues and agreements, that prevented the company from trading the way it needed to (including working with our own ORWO name and Logo, as well as releasing our full range of products under our brand).

We have recently teased the release of new film stocks and we can now confirm that our new colour cine film will be released in July, with our new black and white 100 ASA film coming before that — with shipping expected in April. More information on each of the stocks and how to pre-order will be coming very soon.

This is a brand-new and incredibly exciting chapter in ORWO’s rich history, and we are so excited to develop the company and brand that we are all so passionate about.

Welcome to the analogue revolution.

Best wishes,

The ORWO Team.

 

[halfaman]

There are many cases where insolvency is a transitory situation that can be solved renegotiating the debt in a new agreement with creditors involving partial acquittances or halts in payments. If there is no agreement but the business still makes sense there could be a buyout from other investor (I think this was Tetenal case), the money from the buyout will be used to pay the creditors as much as possible and the new company starts free of charges. If there is no agreement and nobody wants to do a buyout, the company will be closed and sold by pieces to pay the creditors.

During the procedure the company decisions are supervised by the designated judge, buyouts are approved (or not) also by the judge after analyzing the offers and investor behind them.

 

[Daniël Oosterhuis]

I'm not too worried. They initially wanted to run a Kickstarter to fund the new film stocks, but withdrew any mention of it and are now full steam ahead on releasing it on their own capital. That would make no sense if they're in financial trouble.

 

[AgX]

are now full steam ahead on releasing it on their own capital.

What own capital?

 

[Ernst-Jan]

No news yet about a restart?
Most likely the yesterday announced Adox colour film was made by Inoviscoat, I don't know of any other C41 coater that went bankrupt the last years. Or would it be old Ferrania stuff?

Anyhow, in the Adox message it sounded like the company that coated for them is out of bussines for always and the official notices in this thread from Inoviscoat/Seal1818/Orwo sounds like "we will be back soon".
If they are really out of bussiness "for ever" than more companies can close their doors (eg. Polaroid)