Insolvency administrator Arndt Geiwitz said on Wednesday night that he needed the agreements of Germany’s regional governments by 8am Thursday to create the transfer fund, or else the workers would be given notice immediately.
But negotiations continued as that deadline came and went.
Geiwitz wanted to create a rescue company for the employees threatened with unemployment. This would pay them part of their salaries for six months and provide help finding a new job.
The administrator estimated that €71 million would be needed for the rescue company, and the state government of Baden-Württemberg said that it would guarantee a loan of that amount – if other German states would provide mutual guarantees.
But a special state government committee said Wednesday the states would only guarantee a combined total of €45 million. An agreement now appears to dependent on Bavaria’s decision.
If no company can be set, 11,000 Schlecker workers will have no job and no income by Monday morning.