Ailing automotive supplier Leoni (Nuremberg, Germany; www.leoni.com) can now go ahead with its restructuring plans. The majority of shareholders have approved the restructuring, according to the Nuremberg-based cable and wiring systems specialist.

The concept provides for a capital cut for shareholders and a subsequent takeover by major shareholder Stefan Pierer (or his holding company). The Nuremberg court has announced that the zoning decision required will be issued on 21 June 2023.

The measure will substantially reduce Leoni’s debt, says board spokesman and head of restructuring Hans-Joachim Ziems. The financing is secured until the end of 2026.

Following the collapsed sale of its automotive cable business in December 2022, Leoni was in need of fresh money. During negotiations with financial creditors earlier this year, it became apparent that the refinancing would require “substantial contributions from equity and debt capital providers”.

Austrian entrepreneur Pierer was able to win a majority of creditors for the refinancing of the automotive supplier in April this year. The project, at the end of which Pierer planned to inject EUR 150 mn and take over half of the debts, was likely to be completed by summer 2023.