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.
, 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.