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A struggling German business is moving its operations to the UK in an attempt to
take advantage of softer UK insolvency rules.
Schefenaker, the world's biggest maker of car mirrors, is moving to Brighton
because UK insolvency rules allow it to strike a deal with creditors,
potentially giving the business time to turn itself around and save jobs.
Banks in Germany have already sold off most of their loans to the company to UK
hedge funds.
The funds now own 90% of the company's credit.
Under German rules the company faced insolvency because their latest figures
breached a bond covenant.
Minority creditors could have forced the company into insolvency.
Source:
RedAlert
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