Procedure for Neumayer Tekfor under the Act on further facilitating the reorganization of enterprises before conclusion: Creditors agreeing with large majority to the insolvency plans drafted by Heuking Kühn Lüer Wojtek, affirmation of the insolvency plan

The restructuring procedure for Neumayer Tekfor Group under the new "Act on further facilitating the reorganization of enterprises" commenced in September 2012 with the obtaining of protective covers under insolvency law is on the verge of a successful conclusion. The creditors of the operating companies at the manufacturing sites in Germany approved the reorganization insolvency plans with overwhelming majorities on April 29, 2013.  Yesterday, the court affirmed the insolvency plans. A team led by Prof. Dr. Georg Streit, Partner at the Munich office of commercial law firm Heuking Kühn Lüer Wojtek, drafted the insolvency plans for Neumayer Tekfor Group.
 
The insolvency plans mainly include a higher payout than provided in the alternative standard insolvency procedure, with simultaneous preservation of the group, its individual companies and all sites. "After obtaining the court covers, we carefully and in coordination with all involved parties fine-tuned the contents and wordings in order to guarantee that the plans could be accepted. We are very glad about the almost unanimous agreement to the plans, which proves that we succeeded in submitting a convincing solution," Prof. Streit said. Company-appointed administrator Joachim Exner and trustee Dr. Jan Markus Plathner, appointed by Offenburg Local Court, agree: "The nearly unanimous agreement is a great confirmation for the work of everybody involved in the reorganization efforts. We can now complete all transactions quickly and on schedule. The creditors thereby paved the way for the future of Neumayer Tekfor."
 
For the reorganized Neumayer Tekfor Group, a potent strategic investor was found in Indian Amtek Auto Ltd. Amtek had already been associated with Neumayer Tekfor as part of a joint venture and prevailed over other renowned bidders in an auction procedure regarding the acquisition. The transaction, with which Amtek acquires all German and foreign subsidiaries of Neumayer Tekfor Group, is expected to be completed by the end of May. Heuking Kühn Lüer Wojtek had comprehensively advised the group with its Restructuring and M&A teams in this transaction as well.
 
As a result, the more than 1,600 current employees in Germany can keep their jobs. Operational notices of termination are not provided for in the insolvency plans. The preservation of the global group is secured and with the insolvency plans, the creditors will see a distinct improvement over standard insolvency procedures. Following the approval of the creditors on Monday, Offenburg Insolvency Court affirmed the insolvency plans yesterday. Upon satisfaction of all legal requirements, it is expected to waive the insolvency proceedings by the end of May.
 
Neumayer Tekfor Group designs, develops and manufactures solutions for transmissions, engines, drivelines, special applications and safety fasteners. The 3,300-strong global workforce at Neumayer Tekfor generated sales in excess of EUR 500 million in 2011. More than 1,600 employees are working at the manufacturing plants at Hausach (623), Schmölln (316), Rotenburg a.d. Fulda (287) and via Tekfor Services (519) at all three locations. With the execution of the takeover by Amtek Auto Ltd., the new Amtek/Neumayer Tekfor Group will become a leading global manufacturer of engine, transmission and chassis components for the automotive industry with revenue in excess of USD 2 billion and more than 50 manufacturing sites in Asia, Europe, North and South America.
 
Counsel to Neumayer Tekfor Group:
Heuking Kühn Lüer Wojtek, Munich
Prof. Dr. Georg Streit,
Dr. Stephan Degen,
Dr. Fabian Bürk, LL.M., all Restructuring.