Cases & Deals

Eissmann North America secures accommodations from customers to maintain operations during cross-border insolvency and global sale process

Client(s) Eissmann Automotive North America Inc.

Jones Day advised the North American subsidiaries of Eissmann Group Automotive in connection with the German insolvency proceedings of the subsidiaries' ultimate parent and the parent's global sale process, including in negotiating with the subsidiaries' customers regarding the accommodations that would be required as a result of the German insolvency proceeding.

In March of 2024 Eissmann Automotive Deutschland GmbH Bad Urach/Germany filed for insolvency in Germany.

Eissmann has a leading global market position in interior fittings for premium vehicles. It supplies almost all luxury car brands, from Rolls-Royce, Bentley, Lamborghini, Bugatti and Aston Martin to Porsche and the high-end vehicles from Mercedes, BMW and Audi. The group's core competence lies in the first-class manufacture of high-quality leather and textile materials for seat upholstery and interior elements such as gear knobs, storage compartments, armrests, etc.

Beginning in April of 2024 Jones Day advised Eissmann in North America in connection with the German insolvency proceedings and the eventual sale of Eissmann Group Automotive to an investor as part of those proceedings. During the pendency of the global sale process, Jones Day also represented Eissmann in the U.S. in negotiations with its customers regarding the accommodations that would be required as a result of the German insolvency proceedings. As a result of the global sale process, the Group's gross revenue is expected to rise from €320 million to €400-450 million in three years.