Man Roland Moves To Avoid Bankruptcy

Since the worlds third largest offset press manufacturer made its first move toward bankruptcy, talks have been underway to try and keep the doors open.  Over 6,500 employees were informed on Friday that Manroland had filed for insolvency in Augsburg, Germany and was in negotiations to find a way to keep production moving.

What is Insolvency?
While the more popular term used is bankruptcy, insolvency is really somewhat different.  Bankruptcy is a legal process where in the worst case, assets must be sold off and given to creditors.  Insolvency means that you are unable to pay back debts and you have no foreseeable way of obtaining the money at the rate things are going.  By declaring insolvency in a legal sense, more legal options are given to a a company to rectify the matter before declaring outright bankruptcy and closing the doors.

Manroland’s Current State
Talks are currently underway to secure enough credit to keep up necessary production at all three of their three sites.  The current owners have said they are “exploring options”.  What this means is that they are negotiating with an insolvency administrator and investors to help fulfill their current orders and thus keep some revenues coming.  This application for insolvency will not doubt give Manroland more options to deal with the problem and thus more leverage when trying to seek credit.

Confidence in Manroland
In an economy that is already on it’s knees and a market that is losing share to online media, the road ahead is tough for the company.  Orders have taken a steep dive since the summer with little confidence that the printing press will be a dominant player in a technological age.  With Germany’s largest insolvency proceeding in two years, it will be interesting to see what confidence can be instilled in this once dominant offset printing giant.

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