German Car-Parts Maker Put Up for Sale Amid Spat Between Owners

(Bloomberg) -- German auto parts maker Weber Automotive GmbH has been put up for sale as part of insolvency proceedings that started this month, according to a company spokesman.

Weber filed for insolvency amid deteriorating earnings and a row between its founding family and majority shareholder Ardian SAS over the “form and scope” of a financial restructuring.

Failure to rescue the ailing company leaves its creditors on the hook for what remains outstanding from a 130 million euro ($145 million) loan dating from 2016. NIBC Bank NV, IKB Deutsche Industriebank AG, HSBC Holdings Plc, ING Groep NV, Sudwestbank and Helaba were in the bank consortium that provided the original facility, according to people familiar with the matter who asked not to be named discussing private information.

The debt, which remained in place after Ardian bought the company later that year, stood at 95 million euros by 2017, according to company filings.

Representatives for HSBC and Sudwestbank declined to comment. Officials at the other lenders didn’t respond to requests for comment.

Weber’s troubles stem from a gloomy outlook for the global car industry as well as a generalized slowdown in German manufacturing. The Markdorf, Germany-based firm posted a net loss of 8.2 million euros in 2017, according to its most recent accounts.

Wilting earnings left the company unable to meet conditions on its debt, prompting the search for a turnaround strategy, according to a statement from Ardian earlier this month.

An auditor proposed a 5 million-euro annual rent cut, but the Weber family -- owner of the sites leased to the company -- rejected this plan and proposed shareholders inject new funds, Ardian said.

The Weber family disputes Ardian’s account. In its own statement, it said it had proposed a financing package that included a rent reduction and that was in line with the advice from restructuring experts.

Weber Automotive is being advised in the restructuring by law firm Grub Brugger, while Ardian is working with Willkie Farr & Gallagher, according to officials at the companies.

To contact the reporters on this story: Marianna Aragao in London at mduartedeara@bloomberg.net;Rachel McGovern in Dublin at rmcgovern17@bloomberg.net

To contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Chris Vellacott, Abigail Moses

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