Fleishmann/Roco file for bankruptcy

Too bad.  Roco made some great trains and still does.

There not going out of business.

So, we need a German/Euro bankruptcy attorney to explain what this means.  "Insolvency under own management" obviously means something since that term is used a few times.

 

Based on the 'tone' of the notice, and no mention of no longer making product, I think it is presumptuous to assume they will go bye-bye.  On the contrary.

 

Until the European bankruptcy attorney opines, I am going with:  this is a legal maneuver to make the government (or the referenced insurance company) pay the pensions for the retired employees, or at least relieve the current employees from having some substantial percentage of their earning redirected from their own pension fund to supporting that of the retired employees. 

 

Just a guess.

 

 

That is a correct analysis. If the company went out of business completely the German government would be responsible for past and current employees pensions. In this case it's aimed at the insurance company responsible for paying the pensions. I lived in Germany for almost 20 years. When Merkle was elected back in 2006 or 7 which the intent of restructuring the German economy. One of the top issues was reforming the pension system and unemployment for life. IG Farben the largest union in the country went on strike a system that was destroying the German economy and creating huge government deficits which were unsustainable in the long run. IG Farben lost and was forced to accept restructuring of the pension system. The courts have generally rule in favor of the companies who have gone this route. In US language, this would be similar to a Chapter 11 bankruptcy which allows the company to restructure it debts. In this case it's pension program.

 

Pretty much the same scenario that killed LGB.

From what I understand this doesn't really effect Roco at all, or even Fleischmann being produced by Roco (which it has been for a few years now), so from a consumer POV things aren't disrupted

 

I suspect that this back end type of information is why fleischmann was left as a stand alone brand by Roco and using their old toolings under the same name. 

 

I would compare to the european accessory houses, where they have been consolidating left and right, but all the products still available to consumers which is nice. Sad for the businesses, but at least production hasn't ceased.