SPV Schallplatten Produktion und Vertrieb GmbH in Hanover has declared itself insolvent.

The managing partner, Manfred Schütz, decided to submit an application to commence insolvency proceedings on May 25 - roughly equivalent to Chapter 11 bankruptcy protection. In response to this, on May 27, the District Court of Hanover appointed the attorney Manuel Sack as the provisional insolvency administrator. "Normal business will continue even after the application for insolvency," said Schütz.

According to Schütz, together with attorney Manuel Sack, the management of SPV GmbH will not only carry on business operations, but also continue working in the areas of production and distribution in the usual way.

The purpose of the case now in progress is to make it possible for SPV to continue on the basis of a restructuring plan to be jointly drawn up. According to a statement issued, the aim is not only to secure as many jobs as possible in the long term, but also to retain the justified confidence of its customers and suppliers, built up over a period of 25 years.

SPV was founded by Manfred Schütz in 1984. The company is considered to be one of the leading international heavy metal labels and includes groups such as Böhse Onkelz, Fury in the Slaughterhouse, Kreator and Motörhead as well as non-metal acts such as John Lee Hooker.

According to sources, other recording companies are interested in buying SPV although no names have been mentioned.