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Loss On Deconsolidation Of Subsidiary
9 Months Ended
Sep. 30, 2023
Noncontrolling Interest [Abstract]  
Loss on Deconsolidation of Subsidiary

NOTE 20 – LOSS ON DECONSOLIDATION OF SUBSIDIARY

On August 31, 2023 (the “Filing Date”), the Company's wholly owned subsidiary Superior Industries Production Germany GmbH (“SPG”) filed voluntary petitions for preliminary insolvency proceedings in the Neustadt an der Weinstrasse, Germany Insolvency Court (the “Insolvency Court”) seeking relief under the German Insolvency Code (the "Insolvency Code"). SPG filed motions with the Insolvency Court seeking authorization to continue to operate its business as a “debtor-in-possession” under the jurisdiction of the Insolvency Court and in accordance with the applicable provisions of the Insolvency Code and orders of the Insolvency Court.

 

Effective as of the Filing Date, the Company no longer controls SPG and, therefore, no longer includes SPG in its consolidated financial statements. Prior to the Filing Date, SPG has been included in the Company's consolidated financial statements. Upon deconsolidation of SPG, the Company recognized a charge to operations of $79.6 million in the third quarter of 2023, representing the excess of the carrying value over the fair value of its interest in, and receivable from, SPG as of the Filing Date. As a result, the Company has reduced the value of its $7.2 million investment in SPG to zero, as the fair value of SPG's liabilities, including amounts owed to the Company, substantially exceeded the fair value of its assets. The Company has likewise reduced the carrying value of its $76.2 million affiliated receivable due from SPG to $3.8 million, the amount estimated to be recoverable on its subordinated claim as a creditor of SPG. This affiliated receivable is included in other non-current assets in the Company's consolidated balance sheet.