UK buyout group Pamplona has become the latest private equity firm to buy a company from insolvency with the purchase of a German brake pad manufacturer, as the sector looks to rescue distressed assets. The deal follows the acquisition of most of the assets of iconic instant-picture company Polaroid by a US turnaround specialist .

TMD Friction, which has about €100m ($134.4m) earnings before interest tax depreciation and amortisation, fell into insolvency last month after it faced difficulty meeting interest payment on its greater than €400m debt load and the high capital expenditure requirements of its business.