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manroland Secures Form of DIP Financing

December 9, 2011
OFFENBACH, GERMANY—Insolvent press manufacturer manroland AG has secured an agreement for “Massekredit” (similar to debtor-in-possession financing) through Werner Schneider, the provisional insolvency administrator.

“Continuation of production and business operations at manroland is therefore secured,” said Schneider, a financial auditor. “The company can continue to do business with customers and suppliers and we are sending a very positive signal to the market.

“Immediate action was essential as an interruption of production does harm the company and makes the desired sales process more difficult,” he added.

The mass credit of 55 million euro (US$73.5 million) includes US$13.3 million in the form of a cash drawing facility. About US$60 million is a so-called “partial” mass credit in which the lending banks release part of the forgone loans. The release ensures the required liquidity without the banks having to provide new debt.

The financing secures fulfillment of liabilities with customers and suppliers that have placed or received orders with manroland after the company has filed for insolvency. Liabilities originated before the filing will be dealt with as part of the insolvency proceedings later in the process.
 

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