Antolin manufactures doors, instrument panels, center consoles, interior coverings and roof components as well as electronic systems. (Brent Levin/Bloomberg)
key takeaways:
- On July 22, a US judge granted Grupo Antolin temporary protection from creditor lawsuits while its Spanish restructuring awaits court approval.
- The auto parts supplier serves major automakers, employs about 20,000 people — including 2,100 in the U.S. — and cited debt, weak demand, tariffs and industry pressures.
- Bondholders who hold 67.2% of the senior secured notes plan to challenge the restructuring, arguing that it favors the banks and preserves family control.
Spanish auto parts maker Grupo Antolin-Irausa was granted court protection for its assets in the US on July 22, the latest development in an ongoing legal case seeking recognition of the restructuring process started in Spain last month.
Judge Shirin Barde said she would grant Antolin’s request to protect the company’s US assets by barring creditors from bringing new lawsuits for several weeks. The litigation was needed to be put on hold because Spanish courts are on summer recess and will not consider approving the restructuring until September or October at the earliest, a representative for Antolin said in court papers.
Yahoo Finance reported Antolin serves major automakers including Ford, General Motors, Stellantis, Volkswagen, Hyundai and Renault-Nissan.
According to the company’s petition, 75-year-old Antolin makes doors, instrument panels, center consoles, interior coverings and roof components as well as electronic systems such as lighting, smart surfaces, human-machine interfaces and sun visors.
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The company operates 111 production plants and just-in-time delivery centers in 23 countries and employs approximately 20,000 people. Its US operations include 10 production plants, a technical-commercial office and approximately 2,100 employees.
Court filings cited by Yahoo Finance said Antolin supplies to more than 110 automotive brands and about 20 original equipment manufacturers. Its components are used in more than 500 vehicle models worldwide, including nine of the 10 best-selling vehicles globally.
The company, which has the support of most of its creditors in its Spanish restructuring, filed for Chapter 15 bankruptcy in the Southern District of New York on July 20, court records show. Chapter 15 provides protection from creditors in the US while the debtor works on foreign reorganization.
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The US filing included court documents from the Spanish restructuring, in which the Burgos, Spain-based company said the founding Antolin family should continue to control and manage the business.
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Carmakers largely trust Antolin because of the stability that family management has historically provided and the family’s experience and relationships are valuable intangible assets, according to the filing.
According to the documents, “The Antolin family is an essential asset of the group and an unifying element of its identity, strategy and positioning in the global market.”
restructuring challenge
The US filing comes after bondholders took legal action in a United Kingdom court challenging the restructuring. The bondholders said in a lawsuit filed in a New York court that the Spanish restructuring proposal unfairly favors bank lenders and forces noteholders to bear losses despite having the same collateral and the same liens.
Erin Dexter, a Milbank lawyer representing the noteholder group, said bondholders do not oppose stopping the initial litigation but intend to challenge the Spanish restructuring.
At a July 22 hearing, Dexter said the plan violates U.S. Chapter 11 rules because the Antolin family would retain ownership of the company. He said it is a “lose, lose” situation for bondholders as they are being forced to choose between a nearly 32% loss or extension at maturity which would yield a lower yield.
Funds linked to Benefit Street Partners and Spire Partners – members of the Spanish firm’s ad hoc group of noteholders – filed a claim against Antolin in the UK on July 10. court documents show. It said the group collectively held 67.2% of Antolin’s senior secured notes.
They allege the proposed restructuring plan is unfair because it leaves the group’s shareholder Antolin family “completely untouched,” the group’s lawyers said in the filing. The noteholders said in the claim that the deal also contemplated giving preferential treatment to bank creditors – a breach of intercreditor agreements drawn up under English law.
Representatives for Benefit Street Partners, Spire and Grupo Antolin declined to comment.
According to the documents, Antolin will be unable to meet its debt maturities over the next few years. CEO Christina Blanco cited “industrywide headwinds” including weak demand, tariffs, the wars in Ukraine and Iran, rising commodity prices and a slower-than-expected transition to electric vehicles. The company also struggled with “high levels of indebtedness” as a result of its purchase of Magna International’s car-interiors business in 2015 for approximately $525 million.
