FAG bearings distributor in China Commentary

Schaeffler's working capital guarantee to the creditor banks early next year
        We learned from Germany FAG Bearing Group, Schaeffler Group's creditor banks in order to protect those in early 2010, the Schaeffler Group has sufficient working capital, debt had reached an agreement and the Schaeffler Group, Schaeffler those claims can go to next year early repayment ...

        FAG backing bearings distributor in China Commentary: The reason why the formation of such a situation, but also because, in August 2008, for the acquisition of Continental Schaeffler Group to the banks for more than 100 billion euros (about $ 13 billion) in loans. Afterwards, as the financial crisis raged. Schaeffler ready to repay bank debt sharply devalued mortgage assets, which makes the company's debt crisis worse. Schaeffler said the company intends to sell some of the shares, while short-term financial support to the government seeking to fill about 60 billion euros of its funding gap.
 
        So indebted German FAG Roller bearing Group has reached a transitional period with its creditor banks agreement to ensure that the company in early 2010 has enough working capital. The bank decided to protect the Schaeffler's ability to repay, so that it has sufficient fiscal space to develop new financing options. But the two sides have not disclosed details of the agreement. Such Schaeffler company will likely restructure its due to Continental's "Tunxiang" type of acquisition and destruction operations and financial structure.