Knoche continuing to operate without restrictions

Knoche Maschinenbau GmbH from Bad Nenndorf in Lower Saxony has filed for insolvency. On 26 September 2024, the Local Court of Bückeburg ordered provisional insolvency proceedings for the company’s assets. Mr Torsten Gutmann, a restructuring expert from PLUTA Rechtsanwalts GmbH, has been appointed provisional administrator.

The mechanical engineering firm with more than 40 people specialises in agricultural machinery for soil tillage. It has a reputation for very high quality in the industry. The company supplies the trade and offers a wide range of machines with a long service life, including the associated spare parts.

Employee salaries guaranteed

Knoche has had to file for insolvency due to liquidity problems caused by the crisis in the agricultural engineering sector. Its sales volume fell significantly in 2024 as distributors’ warehouses were full. In addition, the subsidy policy had a detrimental impact on the willingness of players in the agricultural sector to invest and the business was affected by a seasonal slowdown in the autumn and winter months, leaving it with no choice but to file for insolvency.

The company is continuing to operate without restrictions. The provisional insolvency administrator and his team, which includes economist Mr Jürgen Schendel and attorney Mr Sören Werhahn, will now arrange for pre-financing of the specific substitute benefits provided under German insolvency law. Salaries will thus be guaranteed for three months and the employees will continue to receive their pay as normal.

Discussions with business partners

“Together with management, we will hold discussions with the distributors, suppliers and all important partners and comprehensively analyse the financial situation. The company has a good product offering. The initial talks have already gone well. Our goal is to find a solution for this long-standing business,” said PLUTA attorney Mr Torsten Gutmann in his initial statement on the matter.

Managing partner Mr Jörg Knoche said, “We have informed the staff about the situation. The circumstances we find ourselves in are not easy but our staff remain committed to us. We will work together to preserve our company. Given the initial discussions, I am optimistic that a restructuring will succeed.”

High-quality technology from Lower Saxony

Knoche machines are used in Europe and many parts of the world. Germany is the company’s biggest market. Other key markets include Austria and Switzerland as well as several Eastern European countries and Japan. Customers – whether sugar beet growers in Germany, agricultural cooperatives in Romania or soya bean producers in Japan – have been trusting in high-quality Knoche technology from Lower Saxony since 1965.

The company differentiates between three work phases in which its machinery is used: stubble working, tillage and soil preparation. Its products include disc harrows and cultivators for cereal stubble cultivation as well as chisel cultivators and seed bed and drill combinations for optimum seed bed preparation. Rollers and contract machinery for special applications are used for soil care after sowing.