Reuters: Bankruptcy News: Germany's scandal-hit Hess files for insolvency

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Germany's scandal-hit Hess files for insolvency Feb 13th 2013, 11:16 FRANKFURT | Wed Feb 13, 2013 6:16am EST FRANKFURT Feb 13 (Reuters) - German lighting designer Hess filed for insolvency on Wednesday only months after celebrating its stock exchange debut, deciding an ongoing fraud investigation would scupper any hopes of raising fresh equity. "After intensive examinations, the management board came to the conclusion that Hess is illiquid, has no positive prognosis of the continuation of the enterprise and the company is, according to the current status of examinations, over-indebted," the company said in a statement. Hess, which floated late in October, sacked both members of its management board last month after uncovering fraud that had been going on for a "remarkable period of time". "Because of uncertainties with regard to possible (law)suits of investors there are no sufficient chances for acquisition of new equity or debt capital from investors," Hess said on Wednesday. The company's shares are worth 20 million euros ($27 million), according to Thomson Reuters data. ($1 = 0.7427 euros) (Reporting By Christiaan Hetzner)

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