Eddie Keizan, chairman and founder of Tiger Wheels Limited (JSE:TIW), today told Moneyweb that ATS, the 74%-owned global alloy wheel manufacture, may yet be salvaged*.
"We're talking about a company responsible for 18% of European wheel production. The motor companies won't just stand by and let it fail. It will be salvaged. I can't say how. That will be decided only in time. These are viable businesses."
As far as he knew, he said, separately listed Tiger Automotive, the SA retail distributor is unaffected and beyond any recourse from ATS's creditors. The creditors of ATS were mainly banks and aluminium suppliers.
As the founder of the group, he said he was seriously affected financially by ATS's impending insolvency. The 74% sake in ATS is by far Tiger Wheels' largest asset.
The insolvency will be as big as that of Fidentia. At end December 2006, the company had sales of R1,6bn and total assets of R2,66bn.