Is Forward AM Insolvent?
Forward AM has been serving the entire value chain of additive manufacturing since it was founded as part of BASF. Consulting, simulation of prototypes, final processing and component testing are just as much a part of the services as the development of materials, for which Forward AM is best known. The comprehensive material portfolio includes filaments, powders and photopolymers, which have gained the trust of well-known companies and have been used for various impressive use cases. The list of companies that work with Forward AM materials is long. HP 3D Printing, Weerg, Nexa3D, Creality 3D and Axtra3D are just a few of them, highlighting Forward AM’s relevance in the 3D printing market.
Where the company is today is the result of a long journey and as a new brand, Forward AM wanted to really take off, as Managing Director Martin Back said in a press release in mid-October: “This transformation from BASF 3D Printing Solutions, known as BASF Forward AM, to our new brand, Forward AM, represents our evolution. (…) We welcome you to be part of this journey, and together, we will continue to lead and evolve the world of AM. The future is bright, and we can’t wait to explore the possibilities with you.”
It seemed like things could not be going any better. Then a few days ago, media reports emerged about Forward AM going into insolvency. Could it be that the future is not as bright for the company as assumed?
It was only in October that it was announced that “BASF Forward AM” would become “Forward AM”
3D Printing Industry first picked up on the story, reporting on insolvency proceedings for Forward AM filed at Heidelberg District Court on November 21 without naming specific sources. According to an entry on the auction calendar website, which is managed and fed by ZVG Daten GmbH, Forward AM’s insolvency proceedings were actually opened on Thursday last week. This is surprising for several reasons.
Firstly, proceedings follow a previous written application if a specific reason for opening insolvency proceedings applies, i.e. prevailing or imminent insolvency or over-indebtedness. Secondly, according to German law, such an insolvency application must be filed immediately, within three weeks of becoming aware of the impending or actual insolvency. This contrasts with the optimism that Forward AM spread on its social media channels during Formnext from November 19 to November 22. There was no hint of the company’s precarious situation; on the contrary, it said: “Our team is looking forward to getting in touch with you and providing you with insights”, and at the end of the trade fair:
Formnext – Where ideas take shape was a great success! Connecting with so many partners and visitors at our booth was truly inspiring, and we loved every conversation about the future of Additive Manufacturing. A huge thank you to everyone who stopped by – your enthusiasm and insights made this event unforgettable. We’re excited to see where our collaborations will take us next! – Forward AM on LinkedIn on November 22nd, 2024
In the near future, Forward AM will probably face ongoing insolvency proceedings before further collaborations. An insolvency administrator will be appointed to assist the company. The administrator will be given access to all business documents and accounts and will aim to secure the assets and check whether the costs of the proceedings can be covered by the existing assets and whether the company has any prospect of continuing as a going concern.
Various options are considered in the proceedings, for example restructuring the company, takeover by an investor (transferred restructuring) or complete liquidation. The company has hardly any influence over the outcome, as it is restricted in its ability to act due to the legal situation and is represented by the insolvency administrator. An insolvency fund is intended to ensure that employees’ wages are secured in the coming months and before the insolvency is announced.
It remains to be seen what will happen next for Forward AM. We will keep you up to date and report any news on this matter.You can find out more about Forward AM HERE.
*Update November 26th, 2024: A press release from Forward AM confirms that while they have taken a step into insolvency proceedings with the District Court of Heidelberg, that it is not for the reason that had been reported by many in the media. In fact, the move was mentioned as a proactive measure for the company to restructure while still fulfilling its global obligations. CEO Martin Back expressed confidence in Forward AM’s ability to navigate this transition successfully: “We are confident that, together with our partners and investors, we can lay the groundwork for a successful future. Our focus remains on providing innovative solutions to the success of our customers and further strengthen our leading position in the field of 3D printing solutions.” You can read more HERE.
Forward AM is known for its 3D printing materials
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*All Photo Credits: Forward AM
