GIMOTIVE/STANKIEWICZ GmbH, a supplier of soundproofing insulation used by car makers, has sought bankruptcy protection, the district court where it was filed said yesterday.

The announcement by the district court in the central city of Celle, about 100 kilometers south of Hamburg, came more than three weeks after an apparent deal with creditors, banks and customers had been reached that let the company's more than 2,000 workers receive paychecks.

The court said in a statement that the company requested the insolvency filing and a liquidator was appointed.

The company, which makes soundproofing insulation for automobile interiors and engine compartments, had been wrestling with a drop in demand from the large auto makers, including BMW AG and Daimler AG, suffering from precipitous sales declines.