Manroland, one of the worlds largest offset printers, has received a 74 million dollar lifeline after declaring insolvency a week ago. Insolvency has similarities to bankruptcy, but handled differently. To learn the difference in this proceeding, click here.
Those who are waiting on orders purchased from Manroland were relieved to know that it would be business as usual and that equipment would be manufactured and delivered as promised.
Manroland had run into serious trouble when orders had declined significantly since the summer. It forced the company into a situation where it was threatened with going bankrupt if it could not find financing. The insolvency proceedings helped it to secure financing as well as an agreement with Germany's Federal Labor Agency to pay the company's wages. Manroland currently has over 5,000 employees in Germany alone.
The press manufacturer will receive 13.5 million in cash to deal with immediate needs as part of a loan from creditors. However the administrator overseeing the insolvency proceedings ended the announcement on a realistic note. He stated, "There is only a promise of success in finding a powerful investor if manroland can continue production without limitations."
Confidence in manrolands ability to fulfill orders will be major concern with press buyers. Additionally, the company had a tough road ahead to streamline and return to profitability despite a sluggish press market.
UPDATE: See Possehl To Buy Manroland Web Division
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