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| Agreement concerning restructuring of IFA completed


After a period of economic difficulties, among other things resulting from the upheavals in the automotive industry, the IFA Group has regained a stable basis for a successful reorientation. Dr. Arno Haselhorst, founder of the Starnberg consulting company Haselhorst Associates, has been the Chief Restructuring Officer (CRO) in the management of IFA since January 2019.

At the end of June, an agreement was reached with the participating banks, shareholders and creditors to restructure IFA. The restructuring process should be completed by 31.03.2022. It was possible to avoid significant layoffs.

IFA, a supplier of the automotive industry, based in Haldensleben (Saxony-Anhalt) is one of the world's three largest manufacturers of drive shafts and joints for the international vehicle industry and supplies all major manufacturers in Europe, Asia and North America. The company was on the verge of bankruptcy due to high capacity utilization and parallel expansion, which entailed significant investment. Dr. Arno Haselhorst was appointed to the management in January 2019 to coordinate the restructuring of the group. At the end of June, a restructuring agreement was concluded. "Since October 2018, we have been holding intensive talks with eight banks, 40 promissory note creditors and car manufacturers. The just concluded restructuring agreement meets all the requirements of the necessary financing structure," says Haselhorst. "Nothing stands in the way of an operational reorientation."

The reorganization report clearly certifies the IFA Group's ability to restructure. In addition to short-term coverage of capital requirements, prerequisites for consolidation include consistent implementation of financial plans and comprehensive restructuring measures. The restructuring process should be completed by 31.03.2022.The financing of the IFA Group will be covered through a restructuring loan from the participating syndicate 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 security package. The former shareholders of Nathusius have transferred their shares in the company to SGP Schneider Geiwitz & Partner for fiduciary management. Moreover, an M&A process was initiated to find a partner for the group.

In the next two years, the management will focus on increasing efficiency at all IFA locations. "We have to increase efficiency at the locations abroad significantly and continue to structurally improve the entire processes in Haldensleben," says Haselhorst. "In the first few months of the year, we were able to achieve the first operational and balance sheet improvements," emphasizes Haselhorst. "Major car manufacturers have clearly signaled their confidence in the solidity of IFA. In the first half of the year, we acquired new orders with a total value of over 400 million euros." In addition, existing customers support the reorganization with individual restructuring agreements.
"IFA has a good order book, competitive products and a solid customer base," says Haselhorst. "These are good prerequisites for successful reorganization and realignment together with our financing partners and customers."

Press contact: Corina Picker, Head of Marketing, c.picker[at]haselhorst-associates.com


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