Tag: bankruptcy
Sears enters Chapter 11
On Monday 15 October 2018 Sears Holdings Corporation, the 132-year-old US retailer known for selling everything to everyone, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Southern District of New York.
ATD enter bankruptcy proceedings
A month after its credit rating was downgraded, American Tire Distributors, Inc. (ATD), the largest tyre wholesaler not only in the USA, but in the entire NAFTA region, filed for Chapter 11 bankruptcy protection in the District of Delaware on 4 October. At the time, the company announced that it had entered into a definitive agreement with approximately 75 per cent of its bondholders on the terms of a recapitalization that would reduce the company's debt by approximately $1.1 billion and increase its financial flexibility as it continues its ongoing transformation
Yongtai Group enters administration
The Chinese Yongtai Group, which once ranked as the 32nd largest tyre manufacturer in the world and which used to produce World Rally Championship tyres for DMack as well as the well-known Durun budget brand, is bankrupt. Shandong Yongtai Group Co., Ltd. officially entered administration on 16 July 2018. On 4 August 2018 Shandong Dongying Intermediate People's Court published documents showing that Guangrao County-based Caijin Asset Management Co., Ltd.’s application for Yongtai to enter administration had been accepted. The Beijing-based Dacheng (Jinan) law firm was appointed as the administrator of Yongtai Group.
No extension for Kumho Tire receivership deadline
Sale agreement or receivership – according to creditors, 30 March remains the deadline for Kumho Tire. Yonhap News Agency writes that Lee Dong-gull, chairman and chief executive officer of the Korea Development Bank, has ruled out an extension to this deadline. This means that should its labour union not agree to Qingdao Doublestar Tire’s purchase of a 45 per cent share in the company, from Monday 2 April Kumho Tire will be bankrupt and placed under court receivership.
Yongtai Chemical-owned Covpress in administration
Coventry-based car panel OE supplier Covpress entered administration at the end of September, with administrators stressing there are no current plans for redundancies amongst the 800 staff. Rather there is a good chance the business will be sold as a going concern. So far around 50 companies are said to have expressed an interest. But with business on the up at Covpress, could a deflated Chinese tyre business be behind the news?
Freight markets volatile, though cost has fallen – MCS
As August came to its close, the world's seventh largest - and South Korea's biggest - container shipping line, Hanjin Shipping, filed for court receivership, consumed by mounting debt schedules with creditors and increasing industry overcapacity. Hanjin had suffered annual net losses from 2011-2014 - with total debt in June reaching a staggering $5.5billion. While there may be hope on the horizon, (Hyundai Merchant Marine are in talks to acquire Hanjin's vessels and staff), for the time being, ports in China and the US have denied entry to Hanjin ships and goods cannot be unloaded. Discussions between banks and Hanjin are yet to proffer a solution, though it seems likely that its Asia-United States route and related sales and marketing assets could be on sale by the end of the week in order to raise rehabilitation funds, several news sources have reported.
Bob Jane files for bankruptcy
The latest chapter of the Bob Jane saga sees the former racing driver and founder of Australian tyre and fast fit chain Bob Jane T-Marts filing for bankruptcy. Queensland-based newspaper The Courier Mail writes that the former millionaire claims to have just AU$15 (less than £9) in cash to his name and a meagre collection of assets, including a Holden car. Jane’s creditors include the Australian Taxation Office, which seeks to recoup $105 million in capital gains tax still outstanding from the 2006 transfer of the Bob Jane T-Marts business to son Rodney Jane.
Tyretraders.com enters administration
Martin T Coyne & Matt D Hardy of Birmingham based Poppleton & Appleby have been appointed as joint administrators of Tyretraders.com Ltd. Overhead expenses, rising costs, the fall in tyre prices and investment that apparently outpaced growth of the business are all said to have led to the company entering administration. Moving forward, the administrators aim to sell the business as a going concern.
Sambo Motors buys ailing tuner Carlsson
Sambo Motors Co. Ltd. is to take over insolvent Carlsson Autotechnik GmbH including all employees on 4 December 2015. The Korean automotive supplier with annual revenues of more than US$1 billion in 2014 and 3,000 employees wants to expand the production of special editions for car manufacturers and strengthen the production capacities at the historic plant in Merzig/Saarland.
Reports: Deruibao bankrupt
Reports suggest that struggling Shandong, China-based tyre manufacturing Deruibao tyre has now officially declared bankruptcy. As Tyres & Accessories reported in February, the company called on local Grungrao County officials for support who tried to restructure the business. Qingdao Doublestar and Hengfeng tyre were also linked to the firm as possible buyers.
Deruibao Tire enters ‘restructuring’ proceedings
Chinese tyre-maker Shandong Deruibao Tire Co., Ltd. has entered “restructuring” proceedings, according to Chinese news sources. China News reported that on 7 February Deruibao Tire applied to its local authority, the Guangrao Economic Development Zone Management Committee Council, asking for the government to restructure the business – making a sale of the tyre manufacturing operation a distinct possibility.
Exide files US reorganisation plan
On 17 November, battery manufacturer Exide Technologies filed a plan covering the restructuring of its operations in the USA with the US Bankruptcy Court for the District of Delaware. The plan and accompanying disclosure statement are consistent with the terms of the Plan Support Agreement (“PSA”) and related plan term sheet that the company entered into with the holders of a majority of the principal amount of Exide’s senior secured notes on 4 November; this plan aims to deleverage Exide by more than US$600 million and allow it to emerge from Chapter 11 bankruptcy proceedings in substantially its current form – operating across all existing business segments. Exide’s goal is for its US operations to emerge from Chapter 11 restructuring by 31 March 2015.
Leading German retreader Ihle Group files for insolvency
The Ihle Group, headquartered in Günzburg (Bavaria) yesterday filed for bankruptcy at the local court in Neu-Ulm. Managing director Jürgen Eigenbrodt has since confirmed this with Tyres & Accessories’ German sister publication Neue Reifenzeitung (www.reifenpresse.de), adding that applications for all four companies in the group have been submitted to the court in Neu-Ulm, which has in turn placed the business in provisional insolvency administration.
Exide files for bankruptcy
On 10 June, Exide Technologies filed for Chapter 11 bankruptcy protection in the US. This is the second time it has done so since the Millennium; in April 2002 the stored electrical solutions company also submitted a Chapter 11 application in the District of Delaware. Exide says it took this step to “facilitate the financial and operational restructuring necessary to strengthen its balance sheet and its business to position the company for future success.” It also says it intends to “become more aggressive in reducing costs, taking actions with respect to underperforming business segments and focusing on the most attractive areas for future growth.” Only the company’s operations in the United States are affected by the filing, and Exide Technologies confirms that it plans to “operate globally without interruption during the reorganisation.”
Bad deal ends in bankruptcy for mining tyre supplier
Australian mining tyre supplier Global Tyre Management Services has reportedly entered administration. Business news site SmartCompany.com.au shares information from Deloitte Australia regarding the Maroochydore, Queensland-based firm’s fate; Deloitte partner Richard Hughes said the company ceased trading on 4 April. Its assets, including trucks, tyres, forklifts and property, will most likely be sold off, and the company’s staff of less than ten faces redundancy.