Engineer Manz is currently financially bankrupt.
Weeks of investment discussions yield no fruit: Distressed machinery manufacturer Manz reveals plans to seek bankruptcy protection. Negotiations to carry on.
The beleaguered machinery manufacturing company Manz has announced their intention to initiate insolvency proceedings, citing insufficient funds and heavy debt as main reasons. The filing is expected to take place in the near future.
The financial crunch was brought about by creditors' decision to cease providing further finance, Manz disclosed. Over the past few weeks, the management have engaged in intense negotiations with various capital providers and investors seeking fresh equity or debt capital. Despite this inevitable move, management will persist in discussions with prospective investors.
Trading of Manz shares was momentarily halted on the stock exchange. Post this halt, the value of Manz shares on Xetra plummeted by over 83%. At the moment, the share stands 82.9% lower at 0.70 euros.
Manz, headquartered in Reutlingen, reported sales around 250 million euros last year. The company has been reporting losses in recent times.
Most recently, the company, which serves electric vehicle, electronics and energy sectors, employed roughly 1,435 people. Late last year, truck manufacturer Daimler Trucks acquired a stake of about 10% in Manz as part of a capital increase.
The economy of Manz, struggling due to financial difficulties, led to the company's decision to seek bankruptcy protection. Despite the filing, Manz's management continues negotiations with potential investors, demonstrating their commitment to turning the situation around.
