Mass credit approved for manroland

The provisional insolvency administrator for the insolvent manroland, 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 Werner Schneider. ‘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 mass credit has a volume of 55 million euros, thereof 10 million euros in form of a cash drawing facility. A further 45 million euros are 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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