Insolvency

Automotive restructuring

During the course of an automotive crisis, an automotive supplier with 35 subsidiaries operating internationally had to file for insolvency. Ralf Schmitz and Dr. Benno Hank developed and implemented a restructuring concept which secured the company’s survival.

Project overview

Team

Ralf Schmitz, Dr. Benno Hank

Client

Insolvency administrator

Company
  • Tier-1 automotive supplier
  • Sales of > EUR 1.1 billion
  • Corporation that operates internationally with 35 subsidiaries
  • Legal form: limited company
Initial situation
  • Filing for insolvency due to a crisis in the automotive industry
  • Employment of a (temporary) robust insolvency administrator to carry out a procedure in accordance with European insolvency law
WHAT THE PROJECT INVOLVED
  • Taking over the management of the company
  • Continuing the business activity within the framework of the insolvency in cooperation with the management team
  • Safeguarding the company’s survival through restructuring by transfer
Measures
  • Communicating the “rules” for insolvency to management and business partners
  • Stabilising the corporate organisation and calming/motivating the workforce
  • Setting up insolvency accounting, paying particular attention to ensuring liquidity
  • Negotiating with top customers on arrangements to continue business and follow-up orders
  • Negotiating with trade credit insurers to secure/stabilise deliveries
  • Negotiating with the banks involved
  • Negotiating a redundancy scheme and reconciling different interests
  • Carrying out a carve-out in preparation for a possible separate sale
  • Implementing an M&A process
Result
  • Continuation of business activity without any interruptions to production
  • Successful sale of the two parts of the company to strategic investors
  • Integration of the sold company into the acquiring corporation
  • Retention of almost all the jobs at all sites in Europe
Project duration

Approx. 2 years