Manroland secures credit to continue production

Germany’s manroland AG has secured a credit facility of €55 million, which provisional insolvency administrator Werner Schneider said will secure continued production and make a desired sale easier.
 
Manroland filed for insolvency on November 25 in one of Germany’s biggest corporate failures in recent years, but Schneider has secured an agreement for a so-called ‘Massekredit’, which is similar in nature to debtor-in-possession financing.

The €55 million consists of a €10 million cash drawing facility. A further €45 million is a 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.

Schneider said: ‘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.’
 
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, manroland said.