Berlin/Munich—Global law firm Dentons has represented the promissory note holders of IFA Group in the preparation of a comprehensive plan for the restructuring of the distressed automotive supplier. At the end of June, IFA Group, Saxony-Anhalt's largest automotive supplier, successfully concluded an agreement with the banks and promissory note providers involved. The restructuring plan was agreed with all shareholders and stakeholders, giving the company the green light for the restructuring process.

IFA Group is one of the world's three leading manufacturers of cardan shafts, which it sells to well-known car manufacturers. In addition to its headquarters in Haldensleben, it operates factories at seven other locations, including Poland, China and the US. In 2018, the company generated a turnover of around €700 million.

A Dentons team, led by Restructuring partner Andreas Ziegenhagen and Banking and Finance partner Dr. Matthias Eggert, represented a group of almost 40 national and international creditors, holding promissory notes totalling €140 million (Schuldscheindarlehen). Dentons advised them in negotiations with IFA Group and the other parties involved in the planned restructuring. Dentons continues to act as a borrower's note representative within the scope of the planned restructuring. For the first time in the German market, the role of a borrower's note representative was defined as part of the restructuring agreement in order to facilitate the coordination of the noteholders.

Andreas Ziegenhagen, Head of the Europe and German Restructuring practice, said: "We are very pleased that the restructuring plan for IFA has been successfully launched, creating the best possible conditions for a sustainable restructuring of the company after a period of uncertainty."

Dr. Matthias Eggert, partner for Banking and Finance, said: "The fact that we were able to agree a restructuring plan to satisfy the large number of promissory note holders demonstrates the effectiveness of the promissory note as a financing instrument.”

Advisor to promissory note creditors:

Dentons (Berlin/Munich/Frankfurt): Andreas Ziegenhagen (Partner, Restructuring, Berlin/Frankfurt), Dr. Matthias Eggert (Partner, Banking and Finance, Munich, both lead partners), Verena Etzel (Counsel, Frankfurt); Dr. Detlef Spranger (Counsel), Dr. Benjamin Kurzberg (Counsel, both Berlin, all Restructuring), Alina Bresler (Senior Associate, Restructuring, Munich).

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