Honsel to begin insolvency proceedings; restructuring agent named

By Lisa Kerner

Charlotte, N.C., Oct. 25 - Honsel AG announced it has applied to the District Court in Arnsberg (Germany) to begin insolvency proceedings.

Dr. Frank Kebekus was appointed as provisional insolvency administrator by the court.

The company said that despite "intensive negotiations" over the past months, it has been unable to reach a restructuring agreement.

Honsel was not able to quickly adapt to recovery in the automotive sector, despite undergoing an operative and financial restructuring last year.

"Insolvency law allows us to adjust cost structures in order to reshape the company's future under completely new conditions," spokesperson for Honsel's board of directors Stefan Eck said in a company news release.

"Considering its culture of innovation and strong market position, Honsel still has good prospects for a successful future," Eck said.

Honsel is a producer of light metal components primarily for the automotive industry that is 82% owned by Brussels-based RHJ International.

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