Just a few days after bankruptcy proceedings were initiated by Reifen Krieg GmbH, several other companies under the umbrella of the German Fintyre Group are now bankrupt, including almost all of the companies relevant to the operating business.
German tyre distributor Reifen Krieg GmbH, part of the Fintyre Group of companies (Fintyre) active in tyre distribution and retail in Germany and Italy, filed bankruptcy proceedings on the evening of 6 February in Frankfurt, with lawyer Miguel Grosser appointed trustee. Tyrepress reported on Monday that the group’s chief executive officer, Claudio Passerini – who is also the CEO of the group’s umbrella organisation in Germany, Fintyre Group GmbH – had written to Fintyre’s German employees to inform them of restructuring necessary for the short-term to ensure its sustainable continuation in the wake of missed salary payments in January.
On Monday 15 October 2018 Sears Holdings Corporation, the 132-year-old US retailer known for selling everything to everyone, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Southern District of New York.
A month after its credit rating was downgraded, American Tire Distributors, Inc. (ATD), the largest tyre wholesaler not only in the USA, but in the entire NAFTA region, filed for Chapter 11 bankruptcy protection in the District of Delaware on 4 October. At the time, the company announced that it had entered into a definitive agreement with approximately 75 per cent of its bondholders on the terms of a recapitalization that would reduce the company’s debt by approximately $1.1 billion and increase its financial flexibility as it continues its ongoing transformation
The Chinese Yongtai Group, which once ranked as the 32nd largest tyre manufacturer in the world and which used to produce World Rally Championship tyres for DMack as well as the well-known Durun budget brand, is bankrupt. Shandong Yongtai Group Co., Ltd. officially entered administration on 16 July 2018. On 4 August 2018 Shandong Dongying Intermediate People’s Court published documents showing that Guangrao County-based Caijin Asset Management Co., Ltd.’s application for Yongtai to enter administration had been accepted. The Beijing-based Dacheng (Jinan) law firm was appointed as the administrator of Yongtai Group.
Sale agreement or receivership – according to creditors, 30 March remains the deadline for Kumho Tire. Yonhap News Agency writes that Lee Dong-gull, chairman and chief executive officer of the Korea Development Bank, has ruled out an extension to this deadline. This means that should its labour union not agree to Qingdao Doublestar Tire’s purchase of a 45 per cent share in the company, from Monday 2 April Kumho Tire will be bankrupt and placed under court receivership.
Coventry-based car panel OE supplier Covpress entered administration at the end of September, with administrators stressing there are no current plans for redundancies amongst the 800 staff. Rather there is a good chance the business will be sold as a going concern. So far around 50 companies are said to have expressed an interest. But with business on the up at Covpress, could a deflated Chinese tyre business be behind the news?
As August came to its close, the world’s seventh largest – and South Korea’s biggest – container shipping line, Hanjin Shipping, filed for court receivership, consumed by mounting debt schedules with creditors and increasing industry overcapacity. Hanjin had suffered annual net losses from 2011-2014 – with total debt in June reaching a staggering $5.5billion. While there may be hope on the horizon, (Hyundai Merchant Marine are in talks to acquire Hanjin’s vessels and staff), for the time being, ports in China and the US have denied entry to Hanjin ships and goods cannot be unloaded. Discussions between banks and Hanjin are yet to proffer a solution, though it seems likely that its Asia-United States route and related sales and marketing assets could be on sale by the end of the week in order to raise rehabilitation funds, several news sources have reported.
The latest chapter of the Bob Jane saga sees the former racing driver and founder of Australian tyre and fast fit chain Bob Jane T-Marts filing for bankruptcy. Queensland-based newspaper The Courier Mail writes that the former millionaire claims to have just AU$15 (less than £9) in cash to his name and a meagre collection of assets, including a Holden car. Jane’s creditors include the Australian Taxation Office, which seeks to recoup $105 million in capital gains tax still outstanding from the 2006 transfer of the Bob Jane T-Marts business to son Rodney Jane.
Martin T Coyne & Matt D Hardy of Birmingham based Poppleton & Appleby have been appointed as joint administrators of Tyretraders.com Ltd. Overhead expenses, rising costs, the fall in tyre prices and investment that apparently outpaced growth of the business are all said to have led to the company entering administration. Moving forward, the administrators aim to sell the business as a going concern.
Sambo Motors Co. Ltd. is to take over insolvent Carlsson Autotechnik GmbH including all employees on 4 December 2015. The Korean automotive supplier with annual revenues of more than US$1 billion in 2014 and 3,000 employees wants to expand the production of special editions for car manufacturers and strengthen the production capacities at the historic plant in Merzig/Saarland.
Reports suggest that struggling Shandong, China-based tyre manufacturing Deruibao tyre has now officially declared bankruptcy. As Tyres & Accessories reported in February, the company called on local Grungrao County officials for support who tried to restructure the business. Qingdao Doublestar and Hengfeng tyre were also linked to the firm as possible buyers.
Chinese tyre-maker Shandong Deruibao Tire Co., Ltd. has entered “restructuring” proceedings, according to Chinese news sources. China News reported that on 7 February Deruibao Tire applied to its local authority, the Guangrao Economic Development Zone Management Committee Council, asking for the government to restructure the business – making a sale of the tyre manufacturing operation a distinct possibility.
On 17 November, battery manufacturer Exide Technologies filed a plan covering the restructuring of its operations in the USA with the US Bankruptcy Court for the District of Delaware. The plan and accompanying disclosure statement are consistent with the terms of the Plan Support Agreement (“PSA”) and related plan term sheet that the company entered into with the holders of a majority of the principal amount of Exide’s senior secured notes on 4 November; this plan aims to deleverage Exide by more than US$600 million and allow it to emerge from Chapter 11 bankruptcy proceedings in substantially its current form – operating across all existing business segments. Exide’s goal is for its US operations to emerge from Chapter 11 restructuring by 31 March 2015.
The Ihle Group, headquartered in Günzburg (Bavaria) yesterday filed for bankruptcy at the local court in Neu-Ulm. Managing director Jürgen Eigenbrodt has since confirmed this with Tyres & Accessories’ German sister publication Neue Reifenzeitung (www.reifenpresse.de), adding that applications for all four companies in the group have been submitted to the court in Neu-Ulm, which has in turn placed the business in provisional insolvency administration.
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