11th
December 2008 - TMD Friction
Files for Insolvency for German Operating and Holding companies
Business of the
Automotive Supplier Keeps Going
Due to the sharp
deterioration of conditions in the global automotive industry, TMD
Friction Group, the world’s leading manufacturer of brake friction
material in the Original Equipment market, has been forced to file its
German operating and holding companies for self administrative
insolvency. Derek Whitworth, CEO of TMD Friction, said: “I am deeply
saddened that we have not been able to reach an agreement with our
lenders and shareholders to avoid this action. Although the operative
business of TMD Friction is healthy, the rapid slowdown in the
automotive industry has led to a very high level of pressure on our cash
flow. Additionally, our working capital requirements have significantly
increased following the withdrawal of credit insurance from the entire
automotive supply chain.”
“Dr. Frank Kebekus from the
renowned law office Kebekus & Zimmermann has now been appointed as the
interim insolvency Administrator for the German companies. I hope anyone
familiar with the industry will recognise the strong brand and long term
prospects of the business, allowing the prospect of a sale of TMD
Friction in its entirety as soon as possible. I would like to thank all
my employees for their support and commitment in this very difficult
time“, stated Whitworth.
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