German offset press builder Manroland has filed a petition to initiate insolvency proceedings with the jurisdictional district court at Augsburg, after negotiations with an un-named potential investor “have failed on the home stretch”.
The company has also filed a request for self-administration in order to finalize its on-going restructuring efforts. Werner Schneider has been appointed provisional insolvency administrator to review the possibilities for a restructuring while the business continues to run as normal.
Manroland’s executive board says it aims to rescue key units within the framework of ongoing restructuring efforts as debtor in possession. “The initiated insolvency procedure affords the opportunity to step up the restructuring process and guide the company through this difficult phase,” it states. “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.”
The decision to file for insolvency was triggered by another dramatic downturn in incoming orders since mid-July. Customers are finding it far more difficult to obtain financing, and intensive competition in the face of declining orders has led to even greater pressure on prices and therefore to declining contribution margins.
Manroland currently employs 6,500 people, 5,000 of them in Germany.
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