Chinese Owner Wants to Keep Kiekert - Kiekert Files for Insolvency Amid Chinese Shareholder Crisis
Kiekert, the world's leading automotive locking systems provider, has initiated insolvency proceedings. The company, with a 168-year history, employs 4,500 people globally. The insolvency is due to its Chinese shareholder, Hebei Lingyun Industrial, failing to meet financial obligations, amounting to hundreds of millions. Lingyun acquired Kiekert in 2012.
Kiekert, inventor of modern central locking, is seeking to exit its Chinese ownership to accelerate growth. The company's management aims to continue its legacy as a systemic supplier to the automotive industry. A preliminary insolvency proceeding was launched last week by the District Court of Wuppertal.
Business operations continue at all Kiekert locations, with German employees' wages and salaries secured until November. Lingyun, the current owner, intends to retain control, prevent damage to creditors, and secure Kiekert's long-term future. However, Kiekert's CEO, Jérôme Debreu, has stated that the Chinese shareholder is blocking access to crucial markets and financing, significantly endangering the business.
Kiekert, the global leader in automotive locking systems, has entered insolvency proceedings due to its Chinese shareholder's financial failures. The company seeks to exit Chinese ownership to ensure its continued success. Business operations continue, and employees' salaries are secured until November. Lingyun aims to secure Kiekert's future, but the CEO warns of market access issues.
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