NAYAK is now part of an aviation industry group, earning 100 million euros per annum and employing about 800 workers. The group is active in the field of maintenance, repair and overhaul (MRO) of aircraft expendable parts, on both civil and military sectors, as well as in line maintenance (LM), a technical service for airlines, at more than 30 locations in Europe.
INSOLVENCY GUIDANCE/ TURNAROUND
Early 2017, the former NAYAK Group, one of the largest independent technical service providers in Europe, found itself in an economic predicament, culminating in an application for insolvency. The operative locations in Holland and Italy were not directly affected. On a whole, the 600 NAYAK Group employees generated 75 million euros in returns at 35 locations in Europe.
Dr. Christoph Niering, VID (Germany Association of Insolvency Administrators) chairman, was appointed insolvency administrator by the Cologne district court. Dr. Niering in turn commissioned Kai Peppmeier, as executive manager and CRO, to navigate the operative recovery of the central businesses in Germany. Within a very brief time, intensive negotiations led to closing the major source of losses, the hangar business, transferring the workforce to a job creation and qualification company. New and effective medium-term works agreements were made with the IGM (Industrial Union of Metalworkers) work council and a labour contract finalised to ensure continuation.
All major customer relations were successfully upheld, and, as a matter of fact, expanded. Confronted with extremely fickle business relationships – singular to aviation, and even more applicable to large airlines – it was necessary very early on to secure a stable, medium-term solution, placating international customers and safeguarding against the sudden cancellation of 300 airplanes as well as the potentiated air links. Our team, led by Kai Peppmeier and Centuro’s M&A consultants successfully brought about this transaction.
Further along in the process, Kai Peppmeier instigated performance improvement throughout Europe.