It is almost inevitable that Van Hool will go bankrupt, but not yet: crisis manager talks to three parties about restarting (Lier)

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“I will continue to work fully in the spirit of the transformation plan, in whatever form,” Marc Zwaaneveld, the crisis manager at Van Hool, responds to questions from our sister newspaper The standard. So he will not go to court today to put down the books. This would mean that the court could then declare bankruptcy. For Zwaaneveld, March 31 remains the date on which the decision will be made.

Will there be no bankruptcy then? Yes, because it is virtually unavoidable, even if Zwaaneveld doesn’t like to hear that. It is the result of the high debt burden that Van Hool carries with it. Fresh capital is also needed to avoid bankruptcy, but no one wants to cough up that. No industrial player wants to go that far, and banks and the Flemish government also say they are not bus builders.

Finally, there is the fight in the Van Hool family over the shares. By this afternoon at 12 o’clock the family must indicate whether they have found a solution. A marathon session on Thursday night yielded no breakthrough. After that failed attempt, the parties continued to look for a solution.

Plan B

Van Hool’s board of directors will consider the family’s response on Monday. Zwaaneveld and the company are preparing for a plan B. In such a plan, Zwaaneveld tries to save as many jobs as possible by attempting to sell Van Hool without the old debts. A special works council is planned for Monday afternoon, followed by a press conference at 4 p.m.

It is already clear to the Flemish government that such a plan B is the only realistic solution. It entails a kind of assisted bankruptcy. Legally, Zwaaneveld can choose from three ‘restart formulas’: a liquidation, a flash bankruptcy or a transfer under judicial authority.

Dominique De Marez (Eubelius), specialist in bankruptcies, thinks it will be the latter option. In such a transfer under judicial authority, Van Hool asks the court for permission to sell the livable parts without the associated debts. Van Hool will receive protection from creditors for some time to this end.

A flash bankruptcy is less suitable for a large industrial company like Van Hool, says De Marez. This formula aims at a quick restart, but the new Belgian legislation is not that simple – many formalities still have to be completed. And the scenario also offers no protection against creditors. After all, the idea is that such a flash bankruptcy happens in complete discretion, which is no longer an option with Van Hool.

VDL also in the picture

Zwaaneveld will use the coming days to prepare everything for the restart. He also talks to potential acquirers. One of them is already known: the West Flemish entrepreneur Guido Dumarey. But the Dutch bus builder VDL Bus & Coach is also in the picture. They already build buses in our country in Roeselare, at the former Jonckheere company. In addition, discussions are being held with a third party.

To Dumarey’s disadvantage, an existing bus builder such as VDL can achieve many economies of scale by incorporating Van Hool – such as better purchasing conditions from suppliers, or merging the infrastructure and head office. This means VDL can offer more than Dumarey. The latter does say that he wants to save a maximum number of jobs. A court that must approve such a transfer will also look at employment. Dumarey and the late Wim van der Leegte (VDL) have fought over the same leg several times in the past.

Be realistic

The fact that Van Hool’s current financial situation is hopeless is once again evident from recent figures. The debts to the banks and the NSSO alone amount to approximately 300 million. These debts have therefore increased further in the past year. And on top of that are the debts to suppliers.

Zwaaneveld’s initial transformation plan aimed for a restart in which those old debts were included. He did not ask for debt forgiveness. “You shouldn’t ask for something that isn’t realistic. There was already a large bank debt, but additional bank debt and possibly share capital were added. My plan assumed a lot of debt, but it was mathematically correct,” Zwaaneveld said.

The transformation plan states that Zwaaneveld needs 95 million euros of fresh money to get Van Hool through the crisis. Banks would also have to release the real estate. Together this amounts to 163 million. The government-appointed consultant Eight Advisory states that the plan made the right choices from a business perspective, but did not rule out that up to 210 million euros were needed.

Employees suffer

The choice of a type of guided bankruptcy means that employees will not receive their normal severance payments. They have to make do with about 30,500 euros. The Flemish Region will lose a maximum of 22 million, but will share in the securities that the banks have. The final loss could therefore be a lot lower.

Flemish Member of Parliament Maurits Vande Reyde (Open VLD) meanwhile believes that CD&V has given too much of the impression that Flanders could help save Van Hool without bankruptcy. “The employees thought they could get their severance pay, but they were fooled.” Bram Bombeek, spokesperson for Minister of Economy Jo Brouns (CD&V), says that it has always been pointed out that there were conditions attached to the financial contribution from Flanders. Prime Minister Jan Jambon (N-VA) said The seventh day to be prepared to support a restart after such an assisted bankruptcy.

Van Hool in Koningshooikt employs 2,500 people. If Van Hool goes bankrupt and the employees suffer the consequences, the question will certainly be asked whether the board of directors has not let things take too long.

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