January 15, 2026 15:13

Domo Chemicals’ German sites must continue operating despite ongoing insolvency proceedings and limited liquidity. The order was issued by the authorities in Saxony-Anhalt, which said that, given current weather conditions, it is not possible to safely shut down the Leuna facilities.

To prevent risks to people and the environment, the regional government has ordered a so-called substitute performance (“Ersatzvornahme”) to avert the dangers associated with an uncontrolled shutdown of production lines.

“That the state is allowing, until further notice, the continuation of production on a reduced scale is very good news,” said court-appointed preliminary insolvency administrator Lucas F. Flöther of law firm Flöther & Wissing. “We will have to see what this means for the further course of the insolvency proceedings. What is clear, however, is that we have gained valuable time to examine whether—and under what conditions—a lasting stabilisation is also possible.”
Among the options outlined by the administrator is the entry of a new operator. In that case, the state could withdraw from the substitute performance, allowing the company to regain a long-term outlook.

The three German companies of the Domo Chemicals group filed for insolvency on 25 December (read article). Operating conditions worsened last week after a decision to shut down the plants because of insufficient liquidity to pay suppliers. After bridge-financing talks with creditors and the main shareholder failed on 8 January, Economy Minister Sven Schulze on Monday again convened all creditors and financiers involved in Leuna to seek a solution. With no agreement reached, the state initiated the substitute performance.

In the meantime, the court-appointed administrator said the Federal Employment Agency has approved the advance payment of insolvency benefits for around 585 employees, ensuring that wages and salaries can be paid on time at least until the end of March. This applies to all three insolvent DOMO companies, meaning production at the Premnitz site can also continue.

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