10 July 2002 – German engineering conglomerate Babcock Borsig admitted Monday that negotiations to restructure the company had broken down and that as a result, the insolvency filed last week cannot be withdrawn.

The negotiations on a restructuring concept for Babcock Borsig involved the group’s lenders and a rescue package had the support of both federal and local government.

An examination will now be made in collaboration with Helmut Schmitz, the provisional bankruptcy trustee, as to which other Group companies are affected by the insolvency and how the Group’s business operations can be continued.

One Equity Partners, part of the BankOne Corporation has expressed interest in some of the power generation technology assets. One Equity took control of Babcock’s only profitable asset, HDW, a leader maker of conventional submarine, earlier this year in a controversial deal that hammered Babcock’s share price.