Beissbarth GmbH to be restructured through self-administration

German automotive and workshop equipment manufacturer Beissbarth GmbH is to be restructured by the end of this year and has filed an application with the Munich District Court (Amtsgericht München) to open self-administration proceedings.

Earlier today, the court ordered provisional self-administration and appointed Dr Matthias Hofmann from the law firm Pohlmann Hofmann to be provisional administrator. At the same time, the court appointed a preliminary creditors’ committee, whose members had already voted in favour of preliminary self-administration and the preliminary administrator’s appointment.

Having been appointed restructuring general representative, restructuring expert Jean-Olivier Boghossian will accompany management in the proceedings and develop a restructuring plan together with the provisional administrator.

“This plan, which also aims to permanently change the shareholder structure and thereby strengthen the capital and financial situation, will be an important step on the way to a sustainable restructuring of Beissbarth GmbH,” states Boghossian. “I am sure that the creditors will join us in our conviction that the plan is the best possible way to preserve the company and jobs as well as to satisfy their claims. Therefore, I am confident that the court and the creditors will approve the plan.” Should approval be granted, the self-administration restructuring process could be completed as planned before the end of 2022.

Very good starting position

Beissbarth GmbH, which belonged to the Bosch Group until 2018, manufactures modern testing and service equipment for automotive workshops, specialising in wheel aligners, brake test stands, suspension testers and products for tyre service.

Matthias Hofmann, who as provisional administrator is overseeing the proceedings in the interests of the creditors, emphasises: “After initial discussions with all involved, I can assess the starting position for a restructuring at Beissbarth as very good: a motivated team, established relationships with customers and suppliers, and a market that is in principle secure over the long-term make Beissbarth particularly independent of structural change in the automotive industry. This makes the company very interesting for long-term investors.”

A German-language statement published on the Beissbarth website today relates that the company’s business model isn’t a major causal factor in the current crisis. Instead, a number of issues have come into play: Restructuring measures related to Beissbarth’s spin-off from the Bosch Group were followed by the COVID-19 pandemic, whose impact upon the global economy is still being felt, not least in connection with China’s ‘Zero Covid’ strategy and resulting lockdowns. A third challenge to hit Beissbarth within a short timeframe is the war in Ukraine.

Wages and salaries for the company’s 152 employees are secured until the end of September 2022 by insolvency benefits. The upcoming months until the opening of the self-administration proceedings, which are expected at the end of September or beginning of October 2022, will be used to prepare the reorganisation plan and the restructuring of Beissbarth’s capital resources.

Customers & suppliers returning hard-earned trust

“I am happy, together with my committed employees and supported by the experienced and crisis-tested experts Boghossian and Dr Hofmann, to have taken the path of judicial restructuring proceedings at an early stage,” states Thomas Visel, joint managing director of Beissbarth GmbH. Fellow managing director and chief executive officer, Gary Palmer, adds: “Our longstanding customers and suppliers are remaining faithful to us in this difficult process and are returning us the trust that we have built up over decades through quality and delivery reliability.”

What is self-administration?

Under German law, self-administration (Eigenverwaltung) offers a company planning security and at the same time takes the creditors’ interests into account. Supported by restructuring experts and under the supervision of a trustee, the company is allowed to lead itself through the proceedings. The company’s management team remains in place during self-administration proceedings.