Manufacturing and Engineering
Manufacturing and Engineering
As the manufacturing sector emerges from the global recession, earnings should move into positive territory.
However, many businesses remain vulnerable to other significant risks, including currency fluctuations and competitive tender processes as well as political uncertainty in key export markets, such as the EU and Russia.
Our Approach
Our experience, gleaned from decades spent in support of the sector, demonstrates that appropriate restructuring advice for companies in distress will help them steer a sensible path towards continued trading.
Our approach is holistic in nature; in many situations the root of the problem is not simply financial – this is often just the symptom. Our experience means we also review sales and marketing structures, product line and competitor analysis, combined with production system efficiencies, as well as supplier arrangements. This intelligence enables us to put forward sound and commercially viable solutions that will assist the business in getting back on track.
Our expertise is also supported by our dedicated team of specially selected financial and operational directors with first-hand experience of working within the sector. All have held senior positions and have an enviable track record in areas such as sales and marketing and operational matters.
In the unfortunate circumstance that an organisation is unfit to continue trading in its current form, we can provide a number of options best suited to the needs of the business which will help secure jobs and maintain vital supplier relationships. As a leader in the practice of implementing company voluntary and scheme arrangements, we are perfectly positioned to offer support in this complex area.
By bridging funding gaps, reviewing and restructuring operations to make them lean and fit for purpose, BTG Global Advisory have helped organisations find relief from the considerable challenges of negotiating with creditors, allowing them to run their business and take advantage of opportunities to move the company forward profitably.
Related Case Studies
Manufacturing and Engineering
Heibad
Heibad is a midsize company based in the Franconian Lake District. It designs and produces bathroom furnishings with the hallmark of ‘Made in Germany’ quality. Production takes place in Heideck (Bavaria) at a facility covering some 10,000 square metres. The company uses high-quality materials and components from well-known manufacturers within its own production setup. This results in bathroom furnishings of the highest quality. The company was founded in 2000. Initially, heibad was purely a distribution business. Today, it is an industrial enterprise with its own production facilities. heibad filed for insolvency to respond to the economic challenges it was facing. The local court appointed restructuring expert Mr Peter Roeger from PLUTA Rechtsanwalts GmbH as provisional insolvency administrator.
The business remained fully operational after the application for insolvency had been filed. The wages and salaries of the some 120 employees were guaranteed for a period of three months thanks to specific substitute benefits provided under German insolvency law. The business partners were supportive of the efforts to keep the company operating. Trade fairs were also attended as planned. At the same time, the PLUTA team conducted a structured M&A process. The aim was to find a long-term solution for the company. Just two months after the company had filed for insolvency, the team was able to secure an investor.
The Config I/O Brands Group acquired heibad’s business operations by way of an asset deal. The acquisition strengthens the buyer’s position in the premium furniture segment. Operations at the Heideck facility will continue without disruption. More than 100 jobs have been saved. heibad will remain an independent entity with its own brand and structure. Moving forward, the company will continue to be a proven partner to specialist retailers. The acquisition is very good news for the creditors as well, as the insolvency administrator has been able to achieve the best possible outcome.
Manufacturing and Engineering
Sono Motors
Sono Motors was founded in 2016 and is based in Munich. It secured its initial funding through a successful crowdfunding campaign. The company specialises in the development and production of solar technology in vehicles. Sono Motors also developed the Sion solar-powered electric car. The company announced a new strategy in February 2023. Since then, it has focused on retrofitting and integrating solar technology for third-party vehicles and fleet operators. The Sion project was discontinued. A plan was prepared to settle repayment claims relating to Sion reservations. However, the funding needed for this could not be raised. The company filed for protective shield proceedings in May 2023.
The protective shield proceedings offered Sono Motors GmbH the flexibility it needed to comprehensively restructure itself. Restructuring expert Mr Ivo-Meinert Willrodt from PLUTA Rechtsanwalts GmbH was appointed insolvency monitor for Sono Motors GmbH. Ms Marlene Scheinert assumed the same role for the parent company, Sono Group N.V. Initially, attention was given to the strategic realignment and the preparation of a robust restructuring plan. The company focused entirely on retrofitting and integrating its solar technology into third-party vehicles. Business operations were maintained during the proceedings. A repayment plan was drawn up for customers who had paid deposits for the discontinued Sion project. Just nine months after filing, Sono Group N.V. withdrew its self-administration application. The court confirmed and gave legal effect to the Sono Motors GmbH insolvency plan.
An insolvency plan was prepared for Sono Motors GmbH and this increased the recovery rate. Restructuring agreements were concluded with the creditors of Sono Group N.V. A US investor provided the financing for the insolvency plan, clearing the way for the termination of the holding company’s proceedings.
Manufacturing and Engineering
Warendorf – Die Küche GmbH
Personalised customer care, premium products and German quality. All signs point towards a positive future for Warendorf – Die Küche GmbH. The PLUTA restructuring experts were able to successfully keep the kitchen manufacturer’s business operations going and find an investor four months after the company had filed for insolvency. With a new investor from Hong Kong and a new name – now Warendorf Küchenfabrik GmbH – but the same high quality with a “made in Germany” guarantee, customers worldwide will welcome the solution achieved. This is also a positive result for employees. Most of the some 110 original jobs have been saved through the takeover.
Manufacturing and Engineering
Straubinger Metallbau GmbH
The insolvency law experts from PLUTA Rechtsanwalts GmbH found an investor for Straubinger Metallbau GmbH, based in Bavaria. The company, which has been operating for more than 40 years, filed for insolvency due to liquidity problems. Its core competencies lie in metal and steel construction and fire protection measures. In this area, the company also advises architects and building contractors. The buyer is the former managing director, who set up the company and then successfully managed it for years. Under the asset deal, this long-standing company will retain its name and all jobs have been saved.
Our Other Industry Experience