May 6, 2024
Today at
17:28
CIM Capital is going to court to reverse the sale of bankrupt bus builder Van Hool. According to the investment fund of Van Hool descendant Marc, his own bid for the trailer division did not get a fair chance.
Anyone who thought that the acquiring duo VDL and Schmitz Cargobull could make a quick restart with the remains of the bankrupt Van Hool may be wrong. The Antwerp investment fund CIM Capital, which previously made a bid for the industrial vehicles branch of the Lierse bus manufacturer, is going to court to challenge the sale.
The fund has filed a third party objection, which means that it feels aggrieved by the decision. It also requests access to Van Hool’s figures in summary proceedings in order to be able to make a binding offer for the trailer division. The fund wants to make a fresh start and retain at least 550 jobs.
It is clear that everything was done to get the activities into the hands of VDL and Schmitz Cargobull.
Philippe Van den Broecke
Lawyer at Agio Legal, which advises CIM
CIM Capital is considered a ‘rescue specialist’ in Belgium. It owns, among other things, the sewing and clothing chain Veritas, the travel organization Neckermann and probably Zoute Grand Prix. These companies were in dire straits financially when CIM Capital stepped in. Interesting detail: the founder of the investment company is Marc Van Hool, a scion of one of the family branches that was bought out in 2001.
Save more jobs
It was known that the CIM fund, which has a size of 65 million euros, made a bid of 21 million euros for Van Hool’s industrial vehicles branch at the beginning of last month. It then made it a point to be able to employ about 70 percent of the staff immediately. It promised to retain more jobs and production than Schmitz Cargobull, which won the branch and is aiming for 350 jobs.
But according to Philippe Van den Broecke, lawyer at Agio Legal, which advises CIM, the fund did not get a fair chance. ‘Van Hool was put into a funnel with no one other than Schmitz Cargobull and VDL, a sector colleague of Van Hool, at the end.’ The latter won the case for the bus division.
What does this mean for Van Hool acquirers?
CIM Capital objects to the sale of Van Hool. The fund is also asking the judge in summary proceedings to inspect the figures of the bankrupt bus builder in order to be allowed to submit a bid for the trailer division. While a ruling on the third-party objection can take months, the ruling on summary proceedings can follow quickly. If the judge in summary proceedings rules in favor of CIM Capital, it remains to be seen what this actually means for the Van Hool acquirers VDL and Schmitz Cargobull.
‘There is uncertainty about this in the updated legislation on insolvency. There is also no precedent,” says an insider. The question is whether the judge will go so far as to call into question the entire sale by following CIM Capital’s reasoning.
If the argument is accepted, CIM Capital will be given the opportunity to make a binding offer and the trustees must consider that binding offer. If they accept the offer, this means that the current sale will be reversed.
CIM Capital had an initial telephone conversation with Van Hool crisis manager Marc Zwaaneveld and CEO Filip Van Hool in March, a month before the bankruptcy was declared. The investor then requested access to the necessary information (the data room) to further evaluate the file. “It was not given, despite repeated insistence,” says Van den Broecke. ‘We had to hear through the press that VDL was interested in the bus division and had found a partner in the German Schmitz Cargobull, which wanted to take over the industrial vehicles branch.’
CIM was very surprised when the fund heard through the press on April 10 – a day after it had submitted a bid – that the trustees had given the green light to VDL-Schmitz Cargobull. This happened after VDL had issued an ultimatum earlier that day. “It is clear that everything was done just to get the activities into their hands,” says Van den Broecke.
Support from former top managers
According to the curators, they were under great time pressure and the argument of speed was the deciding factor. They also stated in a press release that the alternative bids and proposals were ‘not significantly better’ than the binding offer from VDL and GRW (Schmitz’s partner). CIM Capital denies that. ‘The combined plans of VDL and GRW would only allow for the retention of 650 to 950 jobs. In our offer we commit to retaining approximately 550 jobs in the industrial vehicle division alone.’
The Antwerp fund was able to view the agreements in principle between VDL and Schmitz Cargobull. This shows that the latter only wants to focus on products that it does not yet have in its range, such as tank containers and storage tanks for hazardous substances. ‘That is why the company is only including 105 workers and 15 employees in its plans.’
CIM Capital wants to take over all activities of the trailer division and says it has the support of three former top managers at Van Hool. ‘According to them, higher production and sales are possible, which will allow us to employ 600 full-time jobs in the foreseeable future.’
CIM’s claim also involves the Mechelen company Lasertek, which was active as a subcontractor for Van Hool and specializes in industrial cutting and welding of metals and plastic, an activity that is crucial for the restart. The fund attracted an external partner for the real estate. Delcrinvest, the family holding company around Jos Delcroix, the owner of Deldo Autobanden, wants to take over the buildings on the Lierse site from Van Hool.
