Receivers OK Van Hool takeover by VDL and Schmitz Cargobull

Dutch bus builder VDL Groep had earlier demanded clarity with regard to the takeover of the bankrupt Flemish bus manufacturer: if no decision was taken by yesterday evening, VDL would walk away, the company was quoted as saying in the media.

VDL has now received the requested clarity from the receivers: the Dutch bus builder may now take over its bankrupt Flemish competitor, while German trailer builder Schmitz Cargobull can take over Van Hool's industrial vehicles division together with its South African partner GRW.

"We are happy that we can launch a quick restart with VDL Groep and GRW/Schmitz Cargobull," Van Hool’s receivers announced in a press release after reaching an agreement in principle with these two parties.

The trade unions have mixed feeling: disappointment but also relief.

Ultimatum

Until Monday the Dutch-German tandem seemed to be the only candidates to take over the remnants of Van Hool after the company was declared bankrupt, but then other candidates surfaced, including West Flemish entrepreneur Guido Dumarey.

Having previously withdrawn an offer, Dumarey came up with a new bid together with America’s ABC, which has been selling Van Hool buses in the US for decades. VDL did not want to participate in a bidding war and so yesterday issued an ultimatum in the media.

Fears skills would walk away, value would be lost

The receivers believed that if there was no done deal too much of the company's value would dissipate. "If the bidding process had to be reopened, we would have lost at least six weeks," says receiver Jeroen Pinoy. "Then both production and distribution would have come to a complete halt. That would destroy value and negatively impact on employment. Customers would not keep waiting. The order book was in danger of being rapidly depleted."

Moreover, Pinoy also feared a drain of employees. "In particular for the specialised products Van Hool makes - tankers, double-decker coaches - specialised workers are needed. These are people like welders, who are on the occupation shortage list. If you leave these people in limbo for months, they will look for and find other jobs. Then a relaunch would become increasingly unlikely. And then there is a risk that investors who are interested today will drop out."

Over 1,500 jobs lost

The receivers say they are convinced that the takeover of bankrupt Van Hool by VDL and Schmitz Cargobull is the best solution for employment.  "Schmitz Cargobull wants to continue production in Koningshooikt in Lier and even wants to build a new production site there. And VDL also plans to keep employment in Lier."

In an initial phase, the two buyers foresee work for 650 to 950 employees and this could grow over time. This also means that at least 1,550 of Van Hool's 2,500 former employees will have to find a new job.

"It will be up to the buyers to set up the actual application procedures," Pinoy explains. "But they have already expressed their intention to start doing so in the coming days."