Diakonie Passau files for insolvency under self-administration
Diakonisches Werk Passau has initiated insolvency proceedings under self-administration. The care and counseling services will continue, announced the managing director Sabine Aschenbrenner. Several media outlets had previously reported this. The reasons for the financial problems are therefore significant cost increases as a result of the coronavirus pandemic and the war in Ukraine, among other things.
The local court in Passau has already granted the application for insolvency under self-administration, the report continued. An initial restructuring plan has been drawn up and is now to be implemented quickly. An external consultancy firm is supporting the social welfare organization. Among other things, Diakonie Passau provides outpatient care services, residential communities, a social psychiatric service and various advice centers, for example for refugees, debtors and families.
The insolvency proceedings have put a spotlight on the organization's social affairs and finances in Lower Bavaria. The external consultancy firm is assisting Diakonie Passau in managing these aspects during the restructuring process.
Source: www.dpa.com
