Case Study
CFO and CRO Role at Global German Automotive Supplier
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Restructuring, financing and crisis management secure stability for leading alloy wheel manufacture
An interim CFO took on CRO responsibilities at a leading automotive supplier. Through financial restructuring, insolvency proceedings and strategic realignment of the subsidiaries, the financing, liquidity and stability of the globally active company were successfully secured.
Company Details
- World leading German manufacturer of light alloy wheels
- Turnover of approx. €1.2b
- Plants mainly in Europe and Africa
Situation and Challenge
- Interim CFO initially intended as a bridging solution
- Due to new crises (impact of the coronavirus crisis and the war in Ukraine on supply chains, exorbitant increase in energy costs, insolvency of a plant), the CFO position has increasingly become a CRO/restructuring position.
Objective and Tasks
- Restructuring of the financing structure through intensive discussions with banks, switch to matched maturity financing and introduction of new financing structures
- Realignment of subsidiaries
- Handle all day-to-day operations, including monthly and annual financial statements
- Advising the shareholder
Objective and Tasks
- Communicating with banks/ trade credit insurances, setting up factoring
- Securing cash in the form of new bank loans
- Operational handling of plant insolvency and support of OEMs/suppliers in insolvency proceedings
- Reorientation of tax concepts and support during tax audits
- Suport in the selection of a new Group CFO
Results and Achievements
- Implementation of new financing structures and approaches
- Timely preparation of special bank reports, long-term planning and annual and consolidated financial statements
- Secured financing from banks and trade credit insurances
- Training of the operational successor as Group CFO
- Successful handling of insolvency