Alno AG Executives Face Trial for Alleged Insolvency Fraud

In Stuttgart, a significant legal proceeding has commenced against former executives of the Alno AG kitchen manufacturing company. This case arises from the company's bankruptcy filing in 2017, raising critical questions about the actions of its leadership during a financially turbulent period.

The trial began with three individuals in the dock, including former CEO Max Müller and former CFO Ipek Demirtas, who are accused of willful insolvency concealment, credit fraud, and embezzlement. The indictment outlines a series of 56 specific offenses attributed to these executives, while a third defendant, Horst O., is charged with aiding and abetting embezzlement in a particularly severe case.

The public prosecutor's office asserts that the accused were aware of the precarious financial situation at Alno AG, which faced liabilities of 65 million euros while holding only 3.8 million euros in liquid assets. Prosecutors contend that the executives failed to report the company's insolvency for several years, despite being cognizant of its dire straits. Evidence suggests that Alno AG may have been insolvent as early as late 2013, well before the formal bankruptcy application in the summer of 2017.

Additionally, the prosecution argues that the defendants approved special bonus payments to themselves unjustly during this period. Following the insolvency proceedings, a private investor acquired parts of the storied company, which continued its kitchen production until it faced another bankruptcy.

Allegations of credit fraud stem from claims that the executives misled investors about the company's financial health. The investment firm Tahoe, which acquired parts of Alno, allegedly did not receive accurate information about the company's financial status, which was crucial for securing two loans. The former executives purportedly painted an overly optimistic picture of the company's future, which they knew was unrealistic.

Moreover, both former leaders face charges of embezzlement related to risk premiums paid to foreign companies. Prosecutors accuse Müller of receiving two risk premiums totaling 220,000 euros, despite being aware that the financing firm Comco, which promised an 11 million euro line of credit, was incapable of delivering such funds.

In response, the defendants' legal representatives deny all allegations and claim that the prosecution's narrative distorts the reality of the situation. Müller's attorney argues that the charges paint a misleading image of a person who exploited a struggling company for personal gain, while Müller himself reportedly incurred substantial personal financial losses.

Furthermore, Demirtas's defense highlighted that a neutral expert opinion was requested and funded by the defendants, which allegedly demonstrated the company's financial viability during the relevant timeframe.

Alno AG, headquartered in Pfullendorf, has a longstanding history in kitchen manufacturing, including several subsidiaries in Belgium, Switzerland, and the Netherlands. At its peak, the company employed nearly 3,000 individuals and generated revenues of up to 650 million euros. The trial is expected to span 29 hearings, with the prosecution initially charging nine individuals, six of which have had their cases dismissed.