Overview
- The Amtsgericht Wuppertal opened preliminary insolvency proceedings on September 23 and appointed lawyer Joachim Exner as provisional administrator.
- Wages for about 700 employees in Germany are secured through insolvency pay until the end of November.
- Management states the Chinese shareholder failed to provide pledged funds in the hundreds of millions and is subject to sanctions that restrict market access and financing.
- US customers withdrew major orders, rating agencies downgraded the company, and banks refused new credit, according to company statements.
- Foreign subsidiaries in Europe, Asia and North America are not part of the German proceeding, and the group employs roughly 4,500 people and supplies lock designs for about one in three cars worldwide.