Pfleiderer, a German manufacturer of wood products, has filed for insolvency after a restructuring plan it agreed in June 2011 failed. The company issued a €275m hybrid perpetual bond through Barclays and Royal Bank of Scotland in 2007.
Individual claimants that held some of the 7.125% bonds or Pfleiderers shares have succeeded in persuading Frankfurts higher regional court to reject the companys application for release related to the lawsuits.
As a consequence, management has decided to file for insolvency. It has not instated an insolvency administrator, but