manroland Receives ‘Mass Credit’ to Support Continuation of Business Operations
OFFENBACH, GERMANY—Dec. 2, 2011—For the insolvent manroland AG, the provisional insolvency administrator Werner Schneider has secured an agreement for a so-called “Massekredit” (similar to debtor-in-possession financing).
“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.”
Schneider is delighted that the financing agreement was reached within only a few days. “Immediate action was essential as an interruption of production does harm the company and makes the desired sales process more difficult,” he said.
The mass credit of €55 million includes €10 million in the form of a cash drawing facility and a further €45 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.