The Bocholter auto parts supplier Borgers quickly needs fresh money from its customers in the industry in order to be able to continue producing even in the insolvency. “There can never be a restructuring in the supplier industry without the manufacturers. We need their financial help to stabilize the company and bring it into calmer waters,” said insolvency administrator Frank Kebekus on Thursday to the Reuters news agency. In eight to ten days he needs financing commitments by the end of the year – at the moment it is being calculated how much money Borgers needs. “Then we will talk to customers from the automotive industry about who is making what contributions. I appeal to everyone to get involved constructively.”
The family company, which has been considered a case for restructuring for years, supplies almost all major car manufacturers with panels, damping and insulation made of natural fibers and plastics for the interior, engine and trunk. “Production is running,” said Kebekus. Not letting them tear off would be enormously expensive. Because the company with 4,600 employees, which filed for bankruptcy on Monday, has almost no liquid funds left. “Everything is very tight. You have to see from day to day that you can continue to supply the car manufacturers.”
VW as the largest customer wants to help Borgers
The manufacturers are dependent on supplies. “I got the impression that Borgers is needed. In Bocholt they say: In Germany, no car leaves the assembly line without parts from Borgers,” said the insolvency administrator. One of the biggest customers is Volkswagen. The carmaker was basically willing to help: “Challenges along the supply chain can only be overcome together,” said a spokesman. “Securing the supplier network has top priority. Volkswagen has always accompanied the Borgers company with this intention.” Mercedes-Benz – also an important Borgers customer – did not want to comment.
Borgers is one of the largest Bankruptcies in the auto parts industry of the past years. “Of course, the Ukraine war, the chip shortage and the reluctance to buy played a role.” In the Corona crisis, the car manufacturers sometimes did not buy any parts for weeks. “This year, energy and transport costs have also increased by more than 10 percent,” Kebekus analyzed the causes.
Banks are in charge at Borchers
The banks have been in charge in Bocholt since last year, to which large parts of the assets are pledged and who had appointed a trustee. According to insiders, however, they fell out with the car manufacturers about further financing.
This is probably why the planned sale of the company failed. “Apparently, banks and automakers rated potential investors differently,” said Kebekus. “Borgers itself would have wished for a strategic investor from the industry.” Now he sees better chances of finding a buyer: “In the event of insolvency, we can offer an asset deal, i.e. taking over the operational business without old liabilities. That is more attractive for many buyers.”