The board of Endor AG, owner of the Fanatec brand, announced in a statement yesterday that they would be negotiating with Corsair “about the restructuring of the company”. The restructuring is to be carried out in accordance with the Act on the Stabilization and Restructuring Framework for Companies (StaRUG).
This step became necessary because Fanatec, known primarily as a manufacturer of hardware for racing and other simulations, had recently run into economic difficulties and was unable to meet acute payment obligations amounting to almost 28 million euros.
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The StaRUG process makes it easier for struggling companies to make changes that can make them profitable again. It represents a means of preventing bankruptcy. With the help of Corsair, Fanatec should now be put back on the road to success.
This is remarkable for the following reason: Thomas Jackermeier, founder and main shareholder and also managing director of Endor AG until his dismissal at the end of March 2024, had also presented a concept for refinancing and, together with a group of investors, raised a good 48 million euros for it.
According to a press release published on April 25, Jackermeier also describes: “We continue to grow and are profitable again. The many one-off effects surrounding the chip crisis are largely history and we are now working through a catalog of measures to significantly strengthen our organization so that we can continue to manage growth.”
For this reason and because Endor AG received the offer from investor Birkenstein Capital, as a result of which there were fears that all shareholders would be expropriated, the current board of directors has come under criticism in recent days. The following video covers a large part of the reasons.
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In addition, Matthias Kosch, who has been CFO at Fanatec since November, and a managing partner at Birkenstein Capital, Tobias Hoffmann-Becking, worked together at another company until October last year.
This led to the assumption that Kosch and Hoffmann-Becking wanted to downplay the ailing Fanatec so that Birkenstein Capital could take it over cheaply, renovate it and later get rid of it at a higher price. Another basis for the fear was the look at other companies with which this was done as part of a StaRUG process.
Behind the scenes, Jackermeier and other forces appear to be waging a power struggle in which the founder and former CEO is fighting for the existence of his company, while others are interested in making a one-off profit that has little to do with the sale of sim racing hardware . Much of this has been summarized in the following thread on X, among others.
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What will emerge from the negotiations with Corsair remains to be seen. In any case, Endor's press release states: “Part of the restructuring plan is a partial waiver by the banks and a complete capital reduction, which would lead to the current shareholders leaving the company without compensation and to a delisting of Endor AG shares from the open market. “
Whether Birkenstein Capital or Corsair: Anyone who has bet on Fanatec on the stock market – as well as anyone who is passionate about virtual racing – could come away empty-handed.