Tuesday, July 17, 2007

Schefenacker, Seeking Bankruptcy, Flees Germany for Friendlier U.K. Courts

(Bloomberg) -- When Schefenacker AG, a German auto-
parts maker, faced a default on bond debt last year, it fled the
country where it was founded in 1935, moved its headquarters to
England and filed for bankruptcy in London.

The maneuver allowed Schefenacker, after relocating on Feb.
11, to complete a 500 million-euro ($680 million) restructuring
last month that company lawyers said would have been impossible
under Germany's more stringent insolvency law.


Read more at Bloomberg Exclusive News

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