NUREMBERG, Germany—Automotive wiring supplier Leoni A.G. has secured a $357 million loan, 90 percent of which will be paid by the German government.
The Nuremberg group is discussing the loan, which runs until end of 2022, with its core banks and expects to reach an agreement soon, Leoni said in an April 20 statement.
The German supplier said the new operating credit line will create financial flexibility as its key customers suspended production due to the COVID-19 pandemic.
As a result of the halt in automotive manufacturing, Leoni said it experienced "a temporary, significant decline in sales volumes."
The German supplier closed production facilities in Europe, North Africa and the Americas due to the global pandemic, and introduced a "short-time work" plan in Germany and other European locations in March.