Schaeffler ‘Buys’ Time from Banks With ‘Bridging Loan’

Schaeffler Group has reportedly obtained a form of bridge financing that gives the automotive supplier more time to negotiate long-term funding, the German Die Welt newspaper has reported. Schaeffler owner, Maria-Elisabeth Schaeffler, apparently agreed to contribute part of her fortune in the deal with a group of lenders including Commerzbank AG and Royal Bank of Scotland Group Plc, according to the report, which added: “The arrangement means Schaeffler is no longer in danger of breaching covenants in the coming months.” However, Bloomberg reports suggest the financing was drawn from a revolving credit facility and that companies “don’t usually draw on the facilities.”