AUGSBERG, GERMANY—Manroland has secured credit to continue its operations, the company has announced on its website.

The "mass credit" is 55 million Euros  according to Manroland, which notes the agreement is similar to debtor-in-possession financing. “Continuation of production and business operations at Manroland is therefore secured,” said Werner Schneider, insolvency administrator. “The company can continue to do business with customers and suppliers and we are sending a very positive signal to the market.”

The credit consists of Euro 10 million in form of a cash drawing facility, and a further Euro 45 million as a “partial” mass credit "in which the lending banks release part of the forgone loans. The release ensures the required liquidity without the banks having to provide new debt."

The financing fulfills liabilities with customers and suppliers accrued after the company had filed to begin insolvency proceedings, while "liabilities originated before the filing will be dealt with as part of the insolvency proceedings later in the process."

Manroland earlier reported that an investor had backed out of buying the company, forcing it to file for insolvency. Schneider is pleased about the quick financing agreement. “Immediate action was essential as an interruption of production does harm the company and makes the desired sales process more difficult,” said Schneider.