Bird & Bird's webinar: Managing insolvency risks in the automotive supply chain across Europe

09 December 2020

08:30 - 10:00 GMT

The automotive market has been facing a series of defaulting suppliers with financial or operational problems long before the COVID-19 pandemic has exacerbated these problems and this trend is likely to increase in the next months.

Our international webinar is designed to provide insights and practical guidance on managing the risks in the automotive supply chain, particularly in view of the upcoming developments in insolvency law in the European automotive market. Topics include:

  • Insolvency issues relating to distressed suppliers and implications for suppliers to insolvent companies 
  • Dealing with threats of insolvency in your supply chain, including early warning systems, step in and taking an equity stake in a critical supplier 
  • What happens when a supplier goes into reorganisation proceeding 
  • How to deal with T&Cs/flow down provisions and commercial risk transfer 

The webinar will be a forum for both in-house legal and business side experts in the automotive and technology sectors, who will be able to join our team of subject matter experts in country-specific interactive breakout sessions, including France, Germany, Italy, Spain, Sweden and the UK to hear about the latest developments and share common experiences and challenges.

We look forward to welcoming you for what promises to be a lively and engaging session!

The programme

 

Introduction

Risk management in the supply chain

  • Key precautions and actions to prevent automotive supply disruption
    • Identification of suppliers and/or customers with potential risk 
    • Monitoring of suppliers and/or customers through the entire duration of the contract 
    • Key underperformance indicators 
    • Alternative sourcing and accelerated certification process of alternative supplier 
    • Key tools to locate at the suppliers’ premises 

Dr. Christian Kessel, LL.M, Partner

Breakout
Session 1
:
France

  • Key underperformance indicators 
  • Appropriate actions in the event of imminent failure of a partner in the supply chain 
  • Considerations of possible outcomes 
  • Secure a deal amicably or in insolvency proceedings 

Romain de Ménoville, Partner
Eric Wallenbrock, Senior Counsel
Celine Nezet, Counsel

Breakout
Session 2
:
Germany

Insolvency/ corporate/ finance focus relating to CovInsAG

  • Overview on temporary legislation addressing COVID-19 related insolvencies (COVInsAG) 
  • Modified obligations and liability risks of managing directors in light of COVInsAG 
  • From first covenant breach to financial restructuring – new measures under COVInsAG 
  • Acquisitions in distressed situations – When is the right time to invest (before application / before opening / after opening of insolvency proceedings)? 

Dr. Michael Jünemann, Partner
Johanna Schindler, Associate
Julia Schichmann, LL.M, Associate

 Breakout
Session 3
:
Germany
 

Commercial law issues relating to insolvency

  • In a nutshell: How insolvency proceedings may affect the supply chain 
  • Relevant legal instruments in contractual relations: Right of retention, termination rights, set-off 
  • Protection through appropriate contractual provisions (e.g. retention of title, rights to tools)
  • Continuation of pending agreements: options of the insolvency administrator and legal consequences 
  • Practical tips for negotiations with insolvency administrators 

Dr. Matthias Spilker, LL.M, Partner
Florian Hoffmann, Counsel

Breakout
Session 4
:
Italy
 
  • Effects of bankruptcy procedures on ongoing agreements in a nutshell 
  • Possible issues with regard to bankruptcy of sub-suppliers (e.g. rights to tools, such as moulds) 
  • Negotiation with the insolvency administrators: practical hints and experiences 

Stefano Pravettoni, Senior Associate

Breakout
Session 5
:
Spain
 
  • Brief update on Spanish recent insolvency developments: urgent Covid-19 measures, New Recast Insolvency Spanish Act and pending implementation of Directive 2019/2013 
  • Treatment of supply contracts under Spanish pre-insolvency and insolvency rules 
  • Position of commercial (non-financial) creditor 
  • Case Study: Insolvency of a Spanish part supplier and legally assisting an international automotive group 
    • Early termination and exercise of rights 
    • Right of separation and demand of delivery of tools, raw materials and semi-finished or finished products 
    • A few lessons learned 

José Luis Lorente Howell, Partner
Elena Martínez Arce, Senior Associate

Breakout
Session 6
:
Sweden
 

 Managing the supply chain/contractual relations:

  • Managing risk and possibilities in your supply chain 
    • Retention of title-clauses in Sweden – restrictions and use 
    • A closer look at force majeure clauses in a Swedish environment 
    • How to reduce (insolvency) risks in your supply chain 
  • Conclusions and way forward 

Mattias Lindberg, Partner

Breakout
Session 7
:
UK
 
  •  Recent changes to UK insolvency law 
    • New insolvency procedures 
    • New law preventing termination automatically on insolvency 
  • Tips and lessons learned regarding automotive insolvency 
  • The house of cards effect – how do you protect against failing suppliers 

Joss Hargrave, Partner
Simon Shooter, Partner

Contact / Registration

Some of the topics will be discussed in a full online auditorium, some topics in breakout sessions for different country-specific laws and regulations on insolvency issues. Please indicate in the RSVP which breakout session would be relevant or of interest to you.

Dial-in details to join the WebEx will be provided in the confirmation email.

We will also be discussing topics submitted to us in advance. If you would like a particular question or issue to be covered, please send it by email to [email protected].