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DUKE&KAY LED THE TURNAROUND OF A COMPANY IN THE AUTOMOTIVE SECTOR AND POSITIVE RESULTS HAVE BEEN ACHIEVED AFTER MANY YEARS

Situation

An Italian company, worldwide supplier in the Automotive industry and part of a Multinational German group held by a Private Equity Firm, was experiencing a period of negative results already at the EBITDA level.

  • The systematic change of the management teams did not work.
  • The Holding constantly covered the losses but the worsening of the worldwide crisis eroded its financial capabilities causing them to eliminate the support to the Italian subsidiary and to ask for an equivalent “Chapter 11 Procedure” as per the Bankruptcy Law in Germany
Duke&Kay activity

After a first evaluation of business topics, a Duke&Kay partner has been appointed Chairman of the Board and a new Management Team selected by Duke&Kay came in (CEO, CFO, Director of Manufacturing and Purchasing Manager).

  • The above team studied a Turnaround plan which was integrated with a financial strategy and supported by the new “Concordato” Procedure following the newly issued Italian bankruptcy Law
  • Then Duke&Kay chose the appropriate professionals/advisors to support the plan (legal and financial advisors)
  • At the same time Duke&Kay in cooperation with the Shareholders, supported the M&A process to find a buyer for the whole German Multinational group, which was finally acquired (about a year later) from a listed at Bombay’s stock exchange Indian group.
Results

Working in a peaceful atmosphere and without causing any issue to the (TOP Class) clients, who financially supported the Company along all the period, Duke&Kay managed as follows:

  • The restructuring plan was systematically outdone in all the monthly actuals.
  • The Law deadlines and the required contents were all respected all the times, gaining as a consequence the trust of the referential Bankruptcy Court.
  • The Shareholders confirmed the trust to the whole team, supporting them and keeping the commitments expected in the previous agreements
  • The creditors unanimously agreed upon the proposals and after a year the company got the Res Judicata.
  • After the turnaround, the company regained competitiveness on the Automotive market.
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