manroland credit injection leaves IPMG and PMP press orders hanging

Teetering German press manufacturer manroland has been pulled back from the brink with €55 million (A$72m) in mass credit, that allows it to fulfil orders placed since it filed for insolvency.

The Massekredit facility does not cover liabilities that originated before the press manufacturer went insolvent. According to a statement on the company’s website; the financing secures fulfilment of liabilities with customers and suppliers that have placed or received orders with manroland after the company has filed for insolvency. Liabilities originated before the filing will be dealt with as part of the insolvency proceedings later in the process.

It is uncertain where this leaves the Australian Lithoman heatset web presses. Both orders were placed before manroland filed for insolvency but no details are available as to financial agreements.

Similar to debtor-in-possession financing, the economic life raft includes €10 million (A$13m) in form of a cash drawing facility. An additional €45 million (A$59m) in partial mass credit will provide the manufacturer with the required liquidity without the banks having to provide new debt.

According to insolvency administrator, Werner Schneider, the financing agreement to secure the manroland’s continued business operation and production was reached within only a few days.

“The company can continue to do business with customers and suppliers and we are sending a very positive signal to the market.

“Immediate action was essential as an interruption of production does harm the company and makes the desired sales process more difficult,” said Schneider.

This announcement comes soon after Zurich-based Capvis Equity Partners dashed the press manufacturers hopes for survival through restructuring, after it examined this year’s figures. The collapse of the company threatens the fallout of 6,500 jobs, 5,000 of which are in Germany.

manroland staff are above the water line for now with an agreement with Germany's Federal Labor Agency to pay the company's wage.