LONDON (2 July 2007) — The International law firm of McDermott Will & Emery has announced the closing of the corporate restructuring of the Schefenacker Group on Friday 29th June 2007. McDermott Will & Emery advised the owner of the Group, Dr Alfred Schefenacker on all aspects of the consensual restructuring.
UK-based Schefenacker Group plc is a global market leader in the manufacture of mirrors, lighting and other products for the world’s leading auto makers with 2005 sales of €930 million and 7,900 employees on 27 sites in 14 countries across Europe, the United States, Asia and Australia.
The company is undergoing a comprehensive financial and operational restructuring which has been affected by means of a novel transformation and migration of the group holding company from a German Aktiengesellschaft (AG) into an English public limited company (PLC), followed by an English law company voluntary agreement (CVA). On implementation of the CVA and the closing of related refinancing and equity recapitalisation, the Schefenacker Group restructured over €500 million (£340 million) of debt, including senior and revolving debt, second lien debt, high yield bonds and various other obligations.
The CVA was recognised under Chapter 15 in the US Bankruptcy Courts. Under the CVA holders of €200 million senior subordinated bonds will swap these for equity and cash.
Dr Alfred Schefenacker will inject €20 million (£13.6 million) in the new mezzanine financing, cancel €100 million (£68 million) in claims and retain an approximately 25 percent stake in the new company.
Commenting on the conclusion to the transaction Rick Mitchell, head of US securities practice in the London office of McDermott said: "This is the first time these various elements have been used together in this manner."
He continued: "Negotiations with the various stakeholders were extremely complex. The successful outcome reflects a consensus among these stakeholders. This is a victory for consensus and common sense."
Mr. Mitchell led the team, with the English law team in London assisted by finance lawyer Razia Begum. The German law team in Dusseldorf was led by partners Uwe Goetker and Norbert Schulte assisted by corporate lawyer Oliver Köster, partner Dirk Pohl providing German tax advice and partner Volker Teigelkoetter providing employment advice.