Electronics Production | March 05, 2008
Balda needs more cash to cover units' losses
Balda has sold Balda Solutions Deutschland GmbH, Balda Werkzeugbau GmbH and Balda Solutions Hungaria Kft. to KS Plastic Solutions GmbH as per end of last year.
Based on profit and loss transfer agreements Balda has to bear the sold companies’ losses for the fiscal year 2007. Balda Solutions and Balda Werkzeugbau have now provided drafts of the financial statements for 2007. Losses according to these draft statements for 2007 exceed previously planned and budgeted numbers. There is no sufficient cash on hand to fully cover those losses. Balda AG is in negotiations with the companies mentioned concerning the amount of the loss to be compensated and regarding a payment plan, respectively. Furthermore, Balda is in talks with banks in order to receive additional credit facilities to cover those loss compensation claims. Both negotiations are well under way. Based on the progress in these negotiations so far, Balda is convinced to successfully reach agreements within the next days.