12th
December 2008 - TMD
Friction in Germany - Wages for Employees Guaranteed Until End of
February 2009
| - |
Production
continues at all sites |
| - |
Dr. Frank Kebekus, interims insolvency
administrator for the German operating and Holding companies, in
positive discussions with customers, suppliers and banks |
| - |
Potential
investors have already shown interest in an acquisition of TMD Friction |
The pre-financing of insolvency money for
the German operating and Holding companies, means wages for the
employees of the automotive supplier TMD Friction, is guaranteed until
the end of February 2009. This was stated the last two days at employee
information meetings with Dr. Frank Kebekus, the interims insolvency
administrator, at all four German sites of TMD Friction. The objective
for the next weeks and months is now the ongoing stabilisation of the
business to prepare a controlled investor sale process. “Initial
conversations with customers, suppliers and banks were positive. They
stand by TMD Friction“,Kebekus said.
A number of potential trade and financial
investors have also shown interest in acquiring TMD Friction. As market
leader in the original equipment market for brake friction material the
company is well positioned internationally. “This is also known by the
market participants”, explained Kebekus. Any sale process is not
expected to conclude before spring 2009. The interim insolvency
administrator sees chances to sell the group entirely to an investor,
safeguarding as many jobs as possible. “As all suppliers, TMD Friction
is dependent on the situation of the automotive manufacturers. If there
is rising demand, TMD Friction will profit, too, and increase its
position as global market leader in the original equipment market”, says
Kebekus.
The responsible persons of TMD Friction
filed insolvency at the local court in Cologne, Germany, on December 5
due to illiquidity. Main reason was the current market situation in the
automotive sector and the aligned slowdown in sales at TMD Friction. The
business has continued production since the filing of the insolvency
application. Some weeks ago TMD Friction already decided to have an
extended Christmas holidays.
About TMD Friction
TMD Friction Group is the world's leading
manufacturer of brake friction materials in the original equipment
market of the automotive and brake industry. Its product portfolio
comprises disc brake pads and drum brake linings for passenger cars and
commercial vehicles together with brake pads for racing and friction
materials for industry. TMD Friction also supplies the global
aftermarket with its Textar, Pagid, Mintex, Don, Cobreq, and Cosid
brands. With locations in Germany and six other European countries, the
USA, Brazil, Mexico, China, Japan and Malaysia, TMD Friction generated a
turnover of 690 million Euros in 2007 and employed 4,500 people
worldwide.
Source: TMD
Friction Press Release