Manroland Single Sheet Paper Business Applies For Bankruptcy Reorganization Again After 14 Years

According to the UK printing industry media PrintWeek, manroland Sheetfed GmbH recently applied to enter Germany's 'Schutzschirm' insolvency procedure with the support of its parent company, Langley Holdings, with the aim of independently advancing its restructuring under court supervision.

Langley Holdings stated last month that the continuing losses of this 'troubled' printing press manufacturing subsidiary had become unsustainable. Data shows that the business lost as much as €43.2 million (approximately RMB 346 million) last year. At the time, the group's board said it was considering how to handle this business.

On March 3, Langley Holdings officially announced that manroland Sheetfed GmbH, headquartered in Offenbach, Germany, had entered the 'Schutzschirm' bankruptcy management process, similar to Chapter 11 of the US Bankruptcy Code, with financial support from Langley Holdings. This procedure allows the company to remain under management control during the restructuring, rather than being taken over by a court-appointed administrator.

The announcement noted, 'Significant structural adjustments are necessary for the manroland Sheetfed division to return to profitability, although the scale will be greatly reduced.'

Company CEO Mirko Kern said: 'Layoffs have become unavoidable, and a large number of jobs will be lost. But I call on the works council and unions to work with us and the restructuring experts to implement the measures we consider necessary to establish a viable business and retain the remaining positions.'

Tony Langley, Chairman and owner of Langley Holdings, had emphasized last month during the strategic review that customers will not be abandoned. He said, 'We are fully aware that many printing companies, most of which are private SMEs, use manroland equipment. No matter what decision is ultimately made, we will ensure that the after-sales service for existing users remains unaffected.'

For this restructuring, the company brought in experts from two external firms, SGP Schneider Geiwitz and BUSE, to act as general representatives to assist management. The core team members include Professor Dr. Peter Fissenewert, a corporate restructuring lawyer from BUSE, tax expert Oliver Brückner from SGP, and restructuring specialist Arndt Geiwitz.

Geiwitz stated: 'There is a chance of success for the restructuring of manroland Sheetfed, but drastic and profound measures must be implemented. The evaluation by independent experts also supports this judgment.'

The print technology division to which manroland belongs (including manroland Sheetfed, Druck Chemie, and BluePrint) also had a difficult year, with sales dropping 13.4% to €271 million. By the end of the year, orders on hand amounted to €32 million, with a total of 1,615 employees. The printing chemicals business operates independently.

Langley Holdings is headquartered in Retford, Nottinghamshire, UK. The company acquired the manroland Sheetfed business from insolvency management in 2012. Manroland was originally a company under Germany's Mann Group and produced its first printing press in 1911.