Floor plan changes for end-terrace house from the developer

Well, gorgeous. Tecklenburg filed for insolvency today. [...] And we really tried back then to dig through annual financial statements and that kind of stuff, and at least from our layman’s perspective, it all didn’t look so wrong. Sigh. Will sort it out later.

“Filing” does not yet mean that there is cause for concern.

Actually, I am still quite optimistic that everything will pass through fairly well for us, but of course delays may occur.

Yes, delays cannot be entirely avoided.

A future neighbor mentioned that construction workers were visible at our construction site today as well.

In my assessment, your BT has a high share of its own employees. They are the best protected, so morale suffers the least.

My hope is at least that they somehow reach an agreement with the creditors there, and that it won’t affect us too badly. But we’ll see. Even though my priority is that they dutifully pay our subcontractors, the banks might see the priorities differently ;)

The banks regularly sit on the creditor side themselves and do not set the priorities there. But presumably they are the leaders in the creditors’ meeting.

On this topic, you will currently find several posts by me in the threads and as well as mainly and as well as – I can well imagine that Tecklenburg will also enter self-administration and emerge healthy from it. What kind of insolvency procedure do you have: at your own request?

Do you have a performance bond?

There is a bond of 5% deposited with the notary, but I need to reread exactly what the conditions around it are (sigh). I mean, if the house were ready to move in without significant defects, they could schedule an acceptance, and if that takes place, they might possibly have claims on that... (there would still be a remaining balance for "completion" or something). Although, if the house becomes ready to move in without much fuss, I think I'd already be pretty happy.

In my assessment, your BT has a high proportion of its own employees. They are best protected; that’s where morale suffers the least.

I'm not so sure about that. We’ve also always chatted a bit with the people when we were on site. The shell builders seemed possibly to be from Tecklenburg, the site manager definitely, for many subcontractors it sounded more like some kind of subs (window installers and tilers for sure), but those companies were usually local companies from the region. If at some point nothing moves anymore, maybe we would also try to talk directly to them, but first a lot still has to be clarified (including, what is the current status).

I also don’t know if they will even let us on the construction site much anymore. I suspect that having an expert look at the current status wouldn’t be a bad idea (although that probably has to happen anyway as part of the insolvency administration?).

Somehow I only read half of the post from 11ant on the first try – oops. Yes, I'm still digging through the links, thanks.

What kind of insolvency proceeding is it with you: on own application?

We also have only very limited information so far, but the wording sounds like they applied themselves (and not, for example, by creditors after they couldn't pay anymore or something like that). "that Tecklenburg GmbH has filed for insolvency with the Kleve District Court as of today."

Otherwise, maybe I'm just imagining this, but "After consultation with the yet to be appointed preliminary insolvency administrator, we will get back to you." possibly the "preliminary" there indicates that they are aiming for self-administration? But maybe that's not decided yet (I'm not that familiar with this) or maybe it's usual to have a preliminary one for the opening anyway, no idea.

The shell builders might possibly have been from Tecklenburg, the site manager definitely, with many of the follow-up trades it sounded more like some subs (window maker and tiler quite certainly),

You know I was the window manufacturer myself. If I were a developer, I would also rather buy in such side things.

We have only very limited information so far,

But at least from first hand, I just contacted you for an exchange :)

possibly the "provisional" indicates that they are aiming for self-administration?

No, "provisional" is always the initial. I think they are capable of self-administration. Haven't they commented on that yet?

To bridge the resultant liquidity shortfall, Tecklenburg GmbH has decided to file an application for insolvency with the competent district court.
Despite these challenges, the management emphasizes the positive outlook for continuing the company. Hermann Tecklenburg’s declared objective is to continue the business and complete all construction projects with the assured quality and adherence to deadlines.

I say, the insolvency application is more for legal reasons than out of cause for concern.

The good order and project backlog form a solid basis for a successful restructuring within the framework of the insolvency proceedings. Tecklenburg GmbH plans to actively use this phase for restructuring. The focus will be on a sustainable and long-term realignment of the company.

This smells like an application for self-administration with good chances of success (both for the application and the perspective).

You know I was a window manufacturer myself.

What? I don’t know anything about that.

Filing for insolvency more by law than out of actual concern.

Well, Google says that during such a filing all claims are frozen. So I guess no installments are being paid for the moment and I would be surprised if much happens then? And then hopefully it’s actually under self-administration(?) and that the assessment is correct that they really want to properly complete the project... (or alternatively the insolvency administrator also thinks it’s a great idea to continue because there’s a chance to make money...)

But if we’re really mostly talking about a delay of maybe a few months (?), then I can live with that. Among friends we also have someone who went through a property developer insolvency with complete dissolution (a long time ago and a much smaller developer). They still managed to part ways quite amicably but then finished everything by self-contracting and I think also with more own labor. But they also ended up in their house eventually. So today has been a bit of a panic day, but my outlook remains positive. It’ll be fine.

It just all still feels a bit surreal... like a few days ago we were still discussing when the handover date would be. Well, well.