Swiss private equity firm dashed manroland hopes
Zurich-based Capvis Equity Partners baulked at the task of restructuring the press manufacturer when it had a look at this year’s figures.
"We sincerely regret on behalf of the employees that we weren't able to come to an agreement over how to put the company on a stable footing," said Daniel Flaig, a Capvis partner.
The fund first held talks in September with manroland management on taking a stake and restructuring the ailing press maker. However when the bottom dropped out of the market mid-July, the results became significantly below what was expected and the restructuring costs significantly higher.
manroland filed for insolvency last Friday after banks refused to extend its three-digit million Euro loan facility. The insolvency is threatening the employment of 6,500 personnel, 5,000 of whom are in Germany. "It is especially bad that the wages for November cannot even be paid anymore, so shortly before Christmas," said Alexandra Roessel, HR manager manroland, in a statement.
According to a report in the German financial press, the administrator, Werner Schneider, claims it might be easier to dismantle the company and sell it in smaller parts. Industry observers speculate that the web division, located at HQ in Augsberg, Bavaria, will be easier to sell and maintain as a stand alone business. Few hold much hope for the sheetfed plant at Offenbach outside Frankfurt.
A number of unidentified potential investors have expressed interest in the company. The horse-trading will begin next week.
Management at the company are still hopeful of resolving the situation. In a statement it said, the initiated insolvency procedure affords the opportunity to step up the restructuring process and guide the company through this difficult phase. Despite all the disappointment over the path that now has to be taken, the insolvency procedure as debtor in possession offers plenty of prospects because the company has compelling products, the necessary know-how, and an excellent team.