Greenberg Traurig LLP issued the following announcement on July 3.
Global law firm Greenberg Traurig, LLP and GT Restructuring, the restructuring unit of Greenberg Traurig in Germany, have advised the IFA Group on the out-of-court restructuring of the Group. The automotive supplier IFA, based in Haldensleben (Saxony-Anhalt), is one of the world's three largest manufacturers of drive shafts and joints for the international automotive industry and supplies almost all major manufacturers in Europe, Asia, and North America.
IFA announced that it has agreed a restructuring process with its business partners. An IFA news release announced on 1 July that at the end of June, a restructuring agreement was concluded. The company release went on to note that “the restructuring report certifies an objectively given restructuring capability to the IFA Group. Prerequisites for a consolidation are, in addition to the short-term coverage of capital requirements, a consistent implementation of planned financial programming and measures for restructuring. The restructuring process should be completed by 03/31/2022. Financing of IFA is guaranteed by a restructuring loan from the participating banks and promissory note creditors as well as a new line of credit for fresh money. The claims of the main creditors are protected by a comprehensive collateral package.”
Greenberg Traurig advised the IFA Group on all aspects of restructuring, in particular insolvency law, financing, corporate, tax and contract law including negotiations with OEMs, loan collateral, antitrust and IP.
The complex restructuring process was characterized by the multifaceted nature of the interests that had to be taken into account. The financing creditors had to reach an agreement with six banks and 40 promissory note creditors. At the same time, an M&A process was set up to find a long-term partner for IFA.
Greenberg Traurig also advised internationally on the entire restructuring process and, in particular, covered legal issues relating to the important IFA locations in the USA, China, and Poland through its offices in those countries, providing the client with comprehensive advice from a single source.
Original source can be found here.