German business avoids insolvency in UK move

German business avoids insolvency in UK move

German car mirror manufacturer leaves Germany for UK to take advantage of insolvency rules

A struggling German business is moving its operations to Brighton in an
attempt to take advantage of UK insolvency rules.

SCHEFENACKER
, the world’s biggest maker of car mirrors, is moving because UK insolvency
rules allow it to strike a deal with creditors, which should give the business
some time to turn itself around and save 7,900 jobs.

German banks had sold off most of their SCHEFENACKER loans to UK hedge funds
that now own 90% of the company’s credit.

Under German rules the company faced insolvency, as Q3 results breached a
bond covenant. Minority creditors could have forced the company into insolvency.

Debt for equity will be swapped to save the company.

Further reading:

Fleet Decisions: a special report

Fleet: tax benefits

Last ditch plan unveiled to save Eurotunnel
operator

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

5m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

5m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

6m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

6m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

6m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

6m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

7m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

7m Emma Smith, Managing Editor