Sector: Automotive industry
Product Range: Valves, seating components
Revenue: EUR 130 M
Employees: 1300
Initial Situation
- Offensive growth strategy with many acquisitions and high investments
- Restructuring of debt financing nearing completion
- Massive slump in automotive sales in Q4 year -1
- Financing discussions could not be successfully concluded due to additional collateral requirements as a result of the changed industry environment
- Difficult financing environment, consisting of heterogeneous bank pool, investment company, as well as program and individual mezzanine
Procedures and Services
- Creation of a restructuring concept including short-term liquidity planning
- Examination of all financing options (factoring, SLB, etc.)
- Continual implementation of measures including measures controlling:
- Immediate savings through shorter working hours & WC management
- Avoidance of customer announced price reductions
- Relocation of manual & semi-automatic assembly lines and reduction of indirect production areas
Results
- Turnaround could already be achieved after 9 months
- Successful implementation of factoring
- Stabilizing and ensuring liquidity by the end of year 2 while maintaining sufficient flexibility
- Restructuring of collateral for the financiers
- Entrepreneurial leadership of the group remains with the main shareholders
Source: Conentro