Changing gears

Kohlberg Kravis Roberts is feeling a cold chill in Germany after two mild winters. The leveraged buyout firm’s Auto-Teile-Unger, an auto parts retailer and servicing chain, depends heavily on drivers putting on winter tyres, and the sale of related products. With operating profit expected to fall by as much as a third following the dearth of snow and sub-zero temperatures, ATU’s leverage ratios will rise and possibly trigger bank covenants. For now, it’s one of Europe’s largest restructurings si...