Acument Global Technologies Initiates Self-Administered Pre-packaged Insolvency Process for its Operations in Germany

TROY, Mich.--Acument Global Technologies, Inc. (“Acument”), a leading global supplier of mechanical fastening systems, today announced it advised management to initiate insolvency plan proceedings according to the German Insolvency Code for its business in Germany, Acument GmbH & Co. OHG ("Acument Germany"), headquartered in Neuss. Acument Germany has filed for a self-administered, pre-packaged restructuring plan (similar to a U.S. chapter 11 filing) under the supervision of the Insolvency Court in Düsseldorf, Germany, and a Preliminary Insolvency Administrator.

The Insolvency Court has appointed Dr. Wolf von der Fecht to serve as Preliminary Insolvency Administrator. Acument Germany has retained insolvency expert Carsten Koch of Leonhardt Westhelle & Partner as its Chief Restructuring Officer.

“We are confident that these proceedings and the subsequent rapid restructuring will enable Acument Germany to re-emerge as a strong, revitalized business partner to our customers in Germany,” said Robin Kendrick, Vice President and General Manager, of Acument’s Europe business unit, which includes Acument Germany.

“The self-administered insolvency process will enable us to achieve a more competitive cost structure, while maintaining company facilities in Germany and as many jobs for our employees as possible,” Kendrick said. “Throughout, we will manage the process in close coordination with our customers and supplier partners, creditors, works councils, governments and other key stakeholders to ensure uninterrupted supply of our products to customers.”

Acument Germany’s insolvency is the result of a substantial and steep decline in automotive production in Germany over the past year. The company is a leading supplier of fastening technology to the German automotive industry.

Included in Acument Germany’s insolvency proceeding are its production sites in Beckingen, Dürbheim, Neuss, Neuwied, and Schrozberg, Germany, as well as a distribution center in Cologne, which combined employ more than 1,700 people. Acument’s other global operations – including the Avdel® facility in Langenhagen, Germany – are not affected by the insolvency proceeding.

Acument Germany’s insolvency filing followed comprehensive discussions between the company, its principal German customers and its joint works councils regarding potential strategic alternatives, including restructuring options outside the court system.

“This self-administered insolvency will help ensure the ongoing viability of Acument’s operations in Germany, while providing the greatest degree of assurance possible for our customers, suppliers, employees, creditors, and other key stakeholders,” said Acument President and Chief Executive Officer Rick Dauch.

“Acument’s other global operations are on strong financial ground thanks to a series of tough, necessary actions we have already taken and will continue to execute across our businesses to respond to the global recession and position Acument for success. We have aggressively realigned costs with declines in revenue, and we recently finalized a credit facility amendment that secures our liquidity and provides covenant relief during the economic downturn. We are confident that we have strong operational and financial plans in place at Acument to successfully navigate continued economic pressures and ensure the overall global competitiveness of our company,” Dauch said.

About Acument Global Technologies, Inc.

Headquartered in Troy, Mich., USA, Acument Global Technologies, Inc., is among the world’s leading providers of mechanical fastening systems and value-based fastening solutions. With about 6,500 employees in 17 countries worldwide, Acument supplies fastening products, systems and services to customers in more than 150 countries. For more information about Acument Global Technologies: www.acument.com