Spanish Auto Parts Maker Antolin Wins U.S. Asset Protection

Spanish auto parts maker Grupo Antolin-Irausa has been granted court protection for its assets in the U.S. on July 22, as part of its ongoing restructuring procedure started in Spain last month. The company, which serves major automakers including Ford, General Motors, Stellantis, Volkswagen, Hyundai, and Renault-Nissan, cited debt, weak demand, tariffs, and industry pressures as reasons for the restructuring. Antolin manufactures doors, instrument panels, center consoles, interior coverings, and roof components, as well as electronic systems, and operates 111 production plants and just-in-time delivery centers in 23 countries, employing about 20,000 people. The company’s U.S. operations include 10 production plants, a technical-commercial office, and roughly 2,100 employees. A U.S. judge granted Antolin temporary protection from creditor lawsuits while its Spanish restructuring awaits court approval. However, bondholders holding 67.2% of senior secured notes plan to challenge the restructuring, arguing it favors banks and preserves family control. The company’s CEO, Cristina Blanco, cited ‘industrywide headwinds’ including weaker demand, tariffs, wars in Ukraine and Iran, commodity price increases, and a slower-than-expected transition to electric vehicles, as well as a high level of indebtedness resulting from its 2015 purchase of Magna International’s car-interiors business for about $525 million.