Manroland AG has today filed a petition to initiate insolvency proceedings with the jurisdictional district court at Augsburg, after the negotiations with a potential investor have failed on the home stretch. At the same time the company has filed a request for self-administration in order to finalise the on-going restructuring efforts. The provisional insolvency administrator Werner Schneider will in due course examine the situation at Manroland, in order to obtain a comprehensive picture of the situation.
The executive board of Manroland aims to rescue key units within the framework of ongoing restructuring efforts as debtor in possession. 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. With the planned entry of a potential investor and on a basis of a financing programme co-ordinated with the previous shareholders and banks the company’s equity base would have been strengthened.
The decision to file for insolvency was triggered by another dramatic downturn in incoming orders which can be noticed since mid-July and has recently accelerated. Although there is still great interest in Manroland’s printing systems, customers are finding it far more difficult to obtain financing in the aftermath of the financial crisis. At the same time, intensive competition in the face of declining orders has led to even greater pressure on prices and therefore to declining contribution margins. The market size is now only at 50 per cent of the level before the beginning of the crisis in 2008.