Standard Profil Automotive GmbH Agrees to Restructuring Deal with Creditors

According to foreign media reports, German auto parts supplier Standard Profil Automotive GmbH has agreed to a restructuring deal with creditors. Under the terms of the agreement, Turkish private equity firm Actera Group will relinquish control of the company, which will be taken over by the bondholders. The restructuring plan indicates that holders of Standard Profil bonds can choose to provide up to €145 million (approximately $170 million) in new financing, which will have super-priority status. Creditors participating in the restructuring will acquire 90% of the company's common stock, and lenders providing guarantees for the transaction will receive additional shares. Documents from Standard Profil show that holders of the existing €275 million bonds will retain 18% of their debt. The new maturity date for the restructured bonds is set for June 30, 2030. The restructuring will restore a total of €83 million in new bonds, with bondholders also receiving an additional 4% common stock in the company. Standard Profil representatives did not comment on the report. The company disclosed in its restructuring plan that sales in the first five months of this year fell short of expectations, primarily due to reduced demand from major customers such as Tesla and Volkswagen, as well as price increases not meeting forecasts. The company expects a compound annual growth rate of 7.9% in sales from 2025 to 2029, driven by an anticipated recovery in the electric vehicle market. Standard Profil began negotiations with bondholders at the end of last year. During the negotiation period, creditors provided €43.5 million in transitional financing, and lenders for revolving credit also agreed to extend the loan term until the end of September. Both loans will be repaid using the new financing. The company anticipates completing the entire restructuring process by the end of September, which will be implemented in accordance with the UK Company Debt Restructuring Arrangement. Standard Profil is facing widespread challenges across the auto parts industry, with the transition to electric vehicles progressing slower than expected, putting pressure on many suppliers. Additionally, the risks of declining automotive demand due to U.S. tariff policies and the resulting compensation negotiations have placed a heavy burden on the auto parts industry.