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Electronics Production | April 02, 2007

EDC take-over would cost more than 1 MEUR

The one who would like to step in as a new owner in Sweden based EMS-provider EDC would have to put up over 1 million euros.
“I have announced that a new owner would have to come up with 10 million SEK (more than 1 million euro) to take over the company. More over the agreement with the debt holders will show the final sum of capital needed to take over EDC. In addition it would probably be necessary to have some running capital to get the business running. How long it will take to get creditability with its suppliers will depend on who the new owner is. If a well-known and well established major player steps in he would probably get higher credit status with its suppliers right away but if an anonymous actor takes over the company he would probably have a harder time with the credit at its suppliers", the restructuring leader Börje Andersson told evertiq.

As announced before the potential buyers will be contacted during April with audits at the factories and discussions about how to make the company profitable again. Currently there are five to six seriously interested buyers and one of these has already been to Kaunas, Lithuania to see the manufacturing subsidiary there. It is yet to see how much of the 20 to 23 million SEK in debts that will be cleared and paid by the new owners. That will be an issue between the new owners and the debt holders.

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