Manroland Files for Biggest Insolvency in Germany in 2 Years
Manroland AG, the German printing-press maker that’s majority possessed by Allianz SE, declared insolvency, within the country’s greatest corporate failure since store Arcandor AG flattened 2 yrs ago.
Manroland filed to spread out insolvency proceedings using the district court in Augsburg, Germany, court spokesperson Alfred Schwarz stated. Werner Schneider was hired as insolvency administrator, stated the Offenbach-based company, which utilizes 6,500 employees worldwide, mainly in Germany.
Germany’s printing-press industry continues to be in a condition of decline for a long time, as clients find it difficult to arrange financing for that machines that typically are more expensive than $a million and interest in printed material declines in age web posting. Manroland and bigger rival Heidelberger Druckmaschinen AG have cut jobs and set employees on shorter hrs to reduce costs.
“The decision to launch insolvency was triggered by another dramatic recession in incoming orders which may be observed since mid-This summer and it has lately faster,” Manroland stated inside a statement. “Customers have found it much more hard to obtain financing as a direct consequence from the economic crisis.”
Unsuccessful Merger Bid
Manroland’s annual sales have fallen by over fifty percent since 2006 to 942 million pounds ($1.25 billion) this past year, pushing the organization for an operating loss. The organization has responded by cutting its labor force by almost one-fifth and putting one-third of their remaining employees on shorter hrs.
Allianz, located in Munich, holds 75 % of Manroland’s share capital, while German heavy-truck maker Guy SE is the owner of almost 23 percent. Allianz can also be the greatest investor in Heidelberger Druck. The insurance provider attempted and unsuccessful 2 yrs ago to mix the 2 companies.
“All solutions unsuccessful due to deficiencies in financial support,” Juergen Kerner, deputy chairman of Manroland’s supervisory board, stated inside a statement today. “A potential investor remarkably withdrew. But particularly the proprietors Guy and Allianz weren't ready to provide more support.”
Heidelberger Druck shares rose 10 % to at least one.43 pounds by 12:58 p.m. local time, on optimism the failure of the competitor can help ease overcapacity. Manroland may be the greatest maker of so-known as web-given printing machines utilized in newspaper production, while Heidelberger Druck may be the leader in the industry in sheet-given machines employed for packaging.
Manroland has filed a request self-administration to accomplish restructuring efforts, and Frank Kebekus was hired as general representative for that update, Manroland stated. Management seeks to save key models, it stated.
Allianz has put the holding in the Allianz Capital Partners investment vehicle. The insurance provider lost 150 million pounds when jet-maker Fairchild Dornier GmbH searched for defense against creditors in 2002 and authored off its entire purchase of Authentos GmbH, Germany’s former condition-possessed federal printer.
Arcandor declared insolvency in June 2009 after many years of sales declines at department-store chain Karstadt, which employed about 25,000 individuals Germany.
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