TMD/Pagid Filing for Insolvency
04-02-2009 | 06:05 PM
#1
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Race Director
Joined: Mar 2006
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From: Tampa
TMD/Pagid Filing for Insolvency
The Cologne Local District Court has opened insolvency proceedings with respect to the assets of the automotive supplier TMD Friction with effect from March 1. As insolvency administrator, the Court has appointed Dr. Frank Kebekus, who has already been fulfilling the function of temporary insolvency administrator there since submission of the insolvency application at the beginning of December.
In the preliminary proceedings, Dr. Kebekus has already managed to stabilize business activity; the company will also continue to operate although proceedings have been opened. At present, TMD Friction is in intensive negotiations with potential investors, among whom are both financial and strategic investors. "We assume we will reach agreement with a potential partner within the next few weeks, who will then put TMD Friction back on track", said Dr. Kekebus.
In the past few weeks, the insolvency administrator and his team, together with the Management of TMD, have developed a reorganisation and restructuring concept that is at present being further refined. It has been possible to secure 1,740 - and, thus, 90 percent - of the workplaces for the time being. The prerequisite for securing these permanently is that TMD does actually reach agreement with an investor in the next few weeks and that there is no further shortfall in the prognosticated turnover figures, which have already been adjusted to the current, difficult situation in the branch.
Just under 260 employees (approx. 160 of these in Leverkusen, approx. 30 in Essen, approx. 60 in Hamm/a.d. Sieg and 6 in Coswig) have received an offer to change to an outplacement facility (OF). They will be employed for a maximum of 10 months in this OF and receive 85 percent of their last net wage. The company prepares the employees for new vocational challenges and supports them in looking for a new job.
"Due to the drop in manufacturers' turnovers that immediately made themselves felt at TMD, personnel adjustments were, unfortunately, unavoidable", said Dr. Kebekus. However, by setting up an OF, it has been possible to socially cushion this step.
Personnel adjustment took place in close cooperation with the potential investors. "All parties, with whom we are at present discussing a takeover of the company, saw the necessity for this measure", said the insolvency administrator.
The Management of TMD Friction filed for insolvency at the competent local district court in Cologne on behalf of the German companies and the Holding as early as the beginning of December 2008 due to inability to pay. The main reason for the insolvency application was the current market situation in the automotive branch. This has led to a drop in turnover at TMD Friction coupled with liquidity problems. With the exception of the Christmas holidays, business activity has continued unchanged since filing for insolvency.
About TMD Friction
TMD Friction Group is one of the world's leading manufacturers of brake friction materials in the original equipment market of the automotive and brake industry. Its product portfolio comprises disk brake pads and drum brake linings for passenger cars and commercial vehicles together with brake pads for racing and friction materials for industry. TMD Friction also supplies the global aftermarket with its Textar, Pagid, Mintex, Don, Cobreq, and Cosid brands. With manufacturing facilities in Germany and other European countries, the USA, Brazil, Mexico, China, Japan and Malaysia, TMD Friction generated a turnover of 690 million euros last year and employed 4,500 people worldwide.
Contact:
TMD Friction Holding GmbH
Schlebuscher Str. 99
51381 Leverkusen
Germany
Janet Dunkel
Corporate Communications
Phone +49 (0) 2171/501 - 904
Fax +49 (0) 2171/501 - 906
E-Mail jdunkel@tmdholding.comThis e-mail address is being protected from spambots. You need JavaScript enabled to view it
In the preliminary proceedings, Dr. Kebekus has already managed to stabilize business activity; the company will also continue to operate although proceedings have been opened. At present, TMD Friction is in intensive negotiations with potential investors, among whom are both financial and strategic investors. "We assume we will reach agreement with a potential partner within the next few weeks, who will then put TMD Friction back on track", said Dr. Kekebus.
In the past few weeks, the insolvency administrator and his team, together with the Management of TMD, have developed a reorganisation and restructuring concept that is at present being further refined. It has been possible to secure 1,740 - and, thus, 90 percent - of the workplaces for the time being. The prerequisite for securing these permanently is that TMD does actually reach agreement with an investor in the next few weeks and that there is no further shortfall in the prognosticated turnover figures, which have already been adjusted to the current, difficult situation in the branch.
Just under 260 employees (approx. 160 of these in Leverkusen, approx. 30 in Essen, approx. 60 in Hamm/a.d. Sieg and 6 in Coswig) have received an offer to change to an outplacement facility (OF). They will be employed for a maximum of 10 months in this OF and receive 85 percent of their last net wage. The company prepares the employees for new vocational challenges and supports them in looking for a new job.
"Due to the drop in manufacturers' turnovers that immediately made themselves felt at TMD, personnel adjustments were, unfortunately, unavoidable", said Dr. Kebekus. However, by setting up an OF, it has been possible to socially cushion this step.
Personnel adjustment took place in close cooperation with the potential investors. "All parties, with whom we are at present discussing a takeover of the company, saw the necessity for this measure", said the insolvency administrator.
The Management of TMD Friction filed for insolvency at the competent local district court in Cologne on behalf of the German companies and the Holding as early as the beginning of December 2008 due to inability to pay. The main reason for the insolvency application was the current market situation in the automotive branch. This has led to a drop in turnover at TMD Friction coupled with liquidity problems. With the exception of the Christmas holidays, business activity has continued unchanged since filing for insolvency.
About TMD Friction
TMD Friction Group is one of the world's leading manufacturers of brake friction materials in the original equipment market of the automotive and brake industry. Its product portfolio comprises disk brake pads and drum brake linings for passenger cars and commercial vehicles together with brake pads for racing and friction materials for industry. TMD Friction also supplies the global aftermarket with its Textar, Pagid, Mintex, Don, Cobreq, and Cosid brands. With manufacturing facilities in Germany and other European countries, the USA, Brazil, Mexico, China, Japan and Malaysia, TMD Friction generated a turnover of 690 million euros last year and employed 4,500 people worldwide.
Contact:
TMD Friction Holding GmbH
Schlebuscher Str. 99
51381 Leverkusen
Germany
Janet Dunkel
Corporate Communications
Phone +49 (0) 2171/501 - 904
Fax +49 (0) 2171/501 - 906
E-Mail jdunkel@tmdholding.comThis e-mail address is being protected from spambots. You need JavaScript enabled to view it
04-03-2009 | 01:35 AM
#2
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Joined: Sep 2005
Posts: 508
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From: Austin, TX
So 260 people are laid off, and the company is hoping to restructure with new investment. Do I read the press release correctly that over half the employees are not in Germany? Their mfg costs in Germany are likely much higher than in other countries.
