Conti’s Neumann ‘Ready to Resign’ if Debt Solution Against Company’s Interests

Speaking at a Deutsche Bank conference, Continental AG chief executive, Karl Thomas Neumann has said he is ready to resign if the restructuring solution Conti and 90 per cent shareholder Schaeffler come up with is against Contienental’s best interests. According to Deutsche Bank analysts, Continental is “doing a good job in adapting the company to the current environment, especially in transferring fixed into variable costs (by approximately 50 per cent), mostly concerning labour costs.” However the analysts also point out that a lot of uncertainties remain including: the restructuring of the balance sheet specifically regarding a rights issue to reimburse a 3.5 billion euro debt which expires in August 2010; whether to acquire Schaeffler assets or not, and eventually the disposal of assets to accelerate debt reduction. Continental’s board is expected to present its solution around the end of July.