NÜRNBERG (dpa-AFX) - One of the major automotive suppliers in Germany, Nuremberg-based Leoni AG, is to be taken off the stock exchange. As part of a restructuring concept, there is to be a capital cut, after which Austrian entrepreneur Josef Pierer (KTM) is to step in with fresh capital of 150 million euros, Leoni announced Wednesday. Pierer would take over just under half of the debt, amounting to 708 million euros. The rest of the debt will remain with Leoni.

"In the view of Leoni AG's management board, this financial restructuring concept is the only remaining restructuring solution," Leoni further announced. The committees of the creditor banks and the federal states of Bavaria, North Rhine-Westphalia and Lower Saxony, as well as the federal government as guarantor, still have to agree.

If the concept is approved, Leoni AG shareholders will end up empty-handed. As it is not expected that a general meeting will approve the concept with a sufficient majority, the concept is to be enforced on the basis of the new Corporate Stabilization and Restructuring Act.

-Restructuring Act.

Leoni produces cable and network solutions for the automotive industry, including cable harnesses. A partial sale, which was supposed to bring 400 million euros into the company's coffers and contribute significantly to debt relief, fell through at the end of last year. The company emphasizes that it considers its business model to be sound and that the reason for the difficulties is primarily the high debt burden./dm/DP/mis