Superior Industries unit SPG enters into court-administered reorganization

Superior Industries International announced that its subsidiary, Superior Industries Production Germany or SPG, has entered into Protective Shield Proceedings, a court-administered reorganization. These proceedings are strictly limited to SPG and its German-based manufacturing facility, operating at the production site in Werdohl, Germany. The Company’s operations in the U.S., Mexico and Poland are not impacted, and its other German operations and aftermarket business are not part of these proceedings. “We have made substantial progress in aligning our business to a rapidly evolving operating environment while elevating our footprint to a competitively advantaged position. Today, the vast majority of Superior’s capacity is high-performing and is strategically placed in two low-cost locations, Mexico and Poland, creating an attractive ‘local for local’ solution for our customers as they seek shorter supply chains to mitigate production risks. The action we are taking represents a continuation of our plan and the transformation of the remaining 6% of our footprint,” commented Majdi Abulaban, President and Chief Executive Officer of Superior. “Our competitive differentiators, including our ability to capture customer demand for larger, premium wheels, will continue to support our business well into the future.” In conjunction with the proceedings, Superior has developed a revised operating plan at its SPG facility to reduce costs, enhance revenues, and to better address critical customer needs… The Company expects to recognize a non-cash charge of approximately $82M in the third quarter of 2023, representing the excess of the carrying value of the net assets over the estimated preliminary fair value of its interest in SPG. Superior expects to incur cash charges associated with these proceedings of EUR 15 to 18M and a benefit to adjusted EBITDA, which is expected to be fully realized in 2024 on a run rate basis, that reflects a payback of approximately one year.