The Social Chain AG: Social Chain AG receives first payments from DIP loan and starts M&A process

Social Chain AG receives first payments from DIP loan and starts M&A process

Berlin, 4 August 2023. Social Chain AG has received the first payments from the DIP loan and has thus been able to secure the ongoing wage and salary payments of its around 40 employees via the insolvency payments of the German Federal Employment Agency (Bundesagentur für Arbeit).

Following the confirmation of the preliminary self-administration by the court, the Management Board of Social Chain AG has now initiated an orderly M&A process. In the neutral process, which is open to competition, it is to be determined whether investor solutions represent the best possible restructuring option for the creditors of Social Chain AG. The search for investors focuses in particular on DS Group as the most valuable investment within the Social Chain group.

Initial talks with interested parties have already been held and show a continuing interest in DS Group as a whole. In terms of employees, geographically and organisationally, DS Group is autonomous and therefore not affected by the insolvency of Social Chain AG.

In cooperation with the provisional creditors' committee and the court-appointed provisional administrator, the global management consultancy and auditing firm Deloitte has been appointed to handle the M&A process.

The proceedings and thus the provisional continuation as well as the continuing option of a potential restructuring of Social Chain AG became possible after Ralf Dümmel and former shareholders of DS Group agreed at short notice to finance the self-administration of the company with a considerable DIP loan.