ISE
Parent group collapse follows subsidiary bankruptcy / Plastics company Intex to continue operating
Automotive supplier Innomotive Systems Europe (ISE, Bergneustadt / Germany; www.innomotive.com) has filed an insolvency petition only two months after its legally independent plastics subsidiary ISE Intex (Morsbach / Germany) declared itself insolvent – see Plasteurope.com Web of 28.11.2006. ISE Intex was formerly IBS Brocke, which ISE took over out of administration in 2004. Christopher Seagon of the Wellensiek law firm (Heidelberg / Germany; www.wellensiek.de), who is handling the Intex case, also has been appointed provisional administrator for the parent group.
In a statement, Seagon said the outlook for ISE Intex – as well as the parent company – is good. Liquidity is "sufficient," and production facilities at Morsbach "fully utilised." Moreover, important customers, the banks and materials suppliers of the plastics company specialising in automotive applications "have agreed that operations should continue." Intex, which has a workforce of around 1,000 at two sites, manufactures various types of plastic linings for automotive interiors. The company last reported annual sales of around EUR 120m.
Restructuring and reorganisation measures carried out by the ISE group in recent years evidently have been insufficient. A large number of employees has been made redundant, wages reduced and working hours extended. Some production sites have been closed. Only in December 2006, Gerd Rosendahl, managing partner and one of five shareholders, told a German newspaper that further job losses need not be feared. Shortly before, however, he had spoken of problems with production at Bergneustadt. Towards the end of the year, the managing board was negotiating with the private equity company Cerberus Capital Management (New York / USA) about injecting fresh capital, but a deal failed.
The insolvency of ISE (ISE Industries Hainichen and the group´s foreign subsidiaries thus far are not affected) is causing considerable political tension in the German state of North Rhine-Westphalia. Following intervention by state economics minister Christa Thoben, the mood has become somewhat more optimistic, however. The insolvency funds will enable business to continue until April. Seagon said various parties have expressed an interest in the business, but none had yet submitted a specific offer as this article was prepared. The German metalworkers union said it believes the outlook for ISE is good. As is the case at financially troubled car mirror manufacturer Schefenacker, some OEMs depend on the company´s products. In 2004, the main customer, DaimlerChrysler, accounted for 38% of ISE sales, followed by VW/Audi with 20% and BMW with 10%.
With a total workforce of 2,800 at three sites in Germany and others in the US, Turkey, Hungary, South Africa and China, ISE manufactures predominantly metal automotive body parts, including hinges and gear components. The group is also known as the world market leader for polyurethane-covered rollover protection systems for convertibles. ISE entered that business in 2001, when it took over Lunke Ventra Automotive (now ISE Industries GmbH) out of administration. The group as a whole, including ISE Industries and ISE Intex, achieved sales of EUR 668m in 2006.
In a statement, Seagon said the outlook for ISE Intex – as well as the parent company – is good. Liquidity is "sufficient," and production facilities at Morsbach "fully utilised." Moreover, important customers, the banks and materials suppliers of the plastics company specialising in automotive applications "have agreed that operations should continue." Intex, which has a workforce of around 1,000 at two sites, manufactures various types of plastic linings for automotive interiors. The company last reported annual sales of around EUR 120m.
Restructuring and reorganisation measures carried out by the ISE group in recent years evidently have been insufficient. A large number of employees has been made redundant, wages reduced and working hours extended. Some production sites have been closed. Only in December 2006, Gerd Rosendahl, managing partner and one of five shareholders, told a German newspaper that further job losses need not be feared. Shortly before, however, he had spoken of problems with production at Bergneustadt. Towards the end of the year, the managing board was negotiating with the private equity company Cerberus Capital Management (New York / USA) about injecting fresh capital, but a deal failed.
The insolvency of ISE (ISE Industries Hainichen and the group´s foreign subsidiaries thus far are not affected) is causing considerable political tension in the German state of North Rhine-Westphalia. Following intervention by state economics minister Christa Thoben, the mood has become somewhat more optimistic, however. The insolvency funds will enable business to continue until April. Seagon said various parties have expressed an interest in the business, but none had yet submitted a specific offer as this article was prepared. The German metalworkers union said it believes the outlook for ISE is good. As is the case at financially troubled car mirror manufacturer Schefenacker, some OEMs depend on the company´s products. In 2004, the main customer, DaimlerChrysler, accounted for 38% of ISE sales, followed by VW/Audi with 20% and BMW with 10%.
With a total workforce of 2,800 at three sites in Germany and others in the US, Turkey, Hungary, South Africa and China, ISE manufactures predominantly metal automotive body parts, including hinges and gear components. The group is also known as the world market leader for polyurethane-covered rollover protection systems for convertibles. ISE entered that business in 2001, when it took over Lunke Ventra Automotive (now ISE Industries GmbH) out of administration. The group as a whole, including ISE Industries and ISE Intex, achieved sales of EUR 668m in 2006.
30.01.2007 Plasteurope.com [207318]
Published on 30.01.2007
German version of this article...