Manz AG to file for insolvency amid financial crisis
German engineering company Manz AG has announced plans to file for insolvency due to severe financial challenges. The company cited illiquidity and over-indebtedness as reasons for the decision.
The application for insolvency proceedings is expected to be submitted in the coming days following a decision by the company's management board. The move was triggered by the withdrawal of financial support from Manz AG’s creditors. Independently of this, Manz is also over-indebted under insolvency law.
"In recent weeks, the Management Board has been in intensive discussions with a number of lenders and investors regarding new equity and debt capital. Discussions with one of the interested investors were at an advanced stage but were unexpectedly broken off by that investor," the company writes in a press release.
As a result of this, there is no financing solution to secure the funds needed to continue Manz's operations outside of insolvency proceedings. However, the Management Board is continuing talks with potential investors.
