Automotive supplier UBC Composites begins restructuring as a debtor in possession

UBC Composites GmbH has started to restructure itself under debtor-in-possession proceedings. The Local Court of Heilbronn assented to the company’s application on 20 March 2025 and ordered provisional debtor-in-possession proceedings.

These proceedings give the company an opportunity to restructure itself under its own steam. Management remains in charge and is being supported by external specialists. Attorney Mr Philip Konen and business management expert Mr Ludwig Stern from PLUTA Rechtsanwalts GmbH have been granted a general power of attorney and will implement the restructuring process together with managing director Mr Peter Gerl. The Local Court of Heilbronn has appointed attorney Mr Sebastian Krapohl, a partner at the GÖRG law firm, as provisional insolvency monitor. He is supporting and overseeing the proceedings in the interests of the creditors.

By taking this step, UBC Composites is looking to put itself on a viable footing and take the necessary restructuring measures. The business remains fully operational at this time while it works on stabilising its financial position. The wages and salaries of the some 90 employees are guaranteed for a period of three months thanks to specific substitute benefits provided under German insolvency law.

UBC Composites specialises in processing fibre composite materials and producing components for the automotive and motorsport industries. The company has had to file for insolvency due to the weak economy and the difficult situation in the automotive sector. These circumstances mean that the subsidiary in Slovakia cannot achieve the capacity utilisation required to operate profitably. The company decided back in 2022 to build an additional production facility in Slovakia in order to expand and partially relocate production capacities. This plant went into operation in 2024, but capacity utilisation has been low. Accordingly, restructuring measures will also be examined for the subsidiary with a view to quickly separating it from the parent company and achieving cost savings. The possibility of shifting orders and production capacities back to Germany in order to optimally utilise the site in Murr, Baden-Württemberg, will also be reviewed as part of the restructuring. At the same time, the potential for cost savings will be analysed. The main plant in Murr is currently operating on a cost-covering basis.

Realignment and search for an investor

“These debtor-in-possession proceedings will allow us to sustainably restructure our company and strategically realign it under our own steam,” said managing director Mr Peter Gerl, who has over 21 years of experience in composites. “We have already drawn up a concept. With our experienced staff and the restructuring measures taken, we are confident that we can secure our long-term future at the Murr site.”

The relevant persons have held discussions with customers and suppliers over recent days and these talks have gone very well. Customers have confirmed their orders and pledged follow-up business. The company will also initiate the process of finding an investor in the near future.

Attorney Mr Philip Konen said, “Our goal is to ensure UBC Composites’ long-term competitiveness. We are working in close consultation with all stakeholders to find a sustainable solution for the company. We will conduct the process of finding a suitable investor over the coming months and are confident that this will have a successful outcome.”

An experienced PLUTA team offering advice on all matters of insolvency law and business will support the company during the proceedings. In addition to the two general agents Mr Philip Konen and Mr Ludwig Stern, the team is comprised of attorney Ms Heike Metzger, business lawyer Ms Selina Senf, attorney Mr Sebastian Weyland and business management expert Mr Luca Reifenberg.

Provisional insolvency monitor Mr Sebastian Krapohl said, “UBC Composites can now plan with certainty for the months ahead thanks to the opportunities afforded by debtor-in-possession proceedings. At the same time, the interests of the creditors are being protected. I will support the continuation of operations and the restructuring over the coming months in the interests of the creditors.”

Fibre composite technology experience

UBC Composites GmbH is an automotive supplier and a partner for fibre composite technology, model construction and toolmaking. The company is based in Murr, Baden-Württemberg, and employs around 90 people in Germany. Over 80 employees work at its subsidiary in Slovakia. Founded in 1993, the company has been delivering custom solutions of the very highest quality ever since. Numerous companies and global players trust in the premium carbon fibre components delivered by UBC Composites GmbH. With more than 30 years of experience, the company is also a partner to the motorsport industry and produces high-precision parts for the aerospace sector.