manroland Files for Bankruptcy in Germany
OFFENBACH, GERMANY–After negotiations with a potential investor failed to reach fruition, web and sheetfed offset press manufacturer manroland AG has filed for bankruptcy protection. Its insolvency proceedings here represents Germany’s largest corporate filing in two years, Bloomberg.com reported.
In a company release, manroland AG noted a dramatic downturn in press orders that began in mid-July and continued to decline. While interest in its equipment remains high, the company said that potential customers are still finding it difficult to obtain financing. The United States and Western Europe were especially problematic markets for the press maker, particularly with sheetfed press orders foundering.
“The executive board of manroland aims to rescue key units within the framework of ongoing restructuring efforts as debtor in possession,” the statement added.
“The initiated insolvency procedure affords the opportunity to step up the restructuring process and guide the company through this difficult phase. 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.”
Vince Lapinski, CEO of manroland North America, said the company was preparing a statement and would hold a press briefing.
“manroland North America is currently operating in a ‘business as usual’ status,” he wrote in an e-mail. “We would like to assure the industry that manroland North America is fully operational, and we are continuing to provide the best possible service for our customers.”
The press manufacturer employs 6,500 people worldwide, with 5,000 in Germany. According to the Associated Press, it reported an operating loss of $33.9 million in the first half of this year.