Court-appointed administrator Werner Schneider, a financial auditor by profession, said it was "essential" to reach a new financing agreement as soon as possible after the company filed for insolvency.

"Immediate action was essential as an interruption of production does harm the company and makes the desired sales process more difficult," he said.

The €55m Massekredit facility includes a €10m cash-drawing facility and a release of €45m worth of foregone loans to provide additional liquidity without the banks having to fund new debt.

It secures the fulfilment of liabilities with customers and suppliers that have placed or received orders with Manroland after the company had filed for insolvency. Liabilities originating prior to the filing will be dealt with as part of the insolvency proceedings.

"Continuation of production and business operations at Manroland is secured," added Schneider. "The company can continue to do business with customers and suppliers and we are sending a very positive signal to the market."

According to a report on Bloomberg, a Manroland spokesman said that the new finance facility had been put in place following an agreement for Germany’s Federal Labor Agency to pay the company’s wages.

This article originally appeared at printweek.com

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