AUGSBERG, GERMANY—Press manufacturer Manroland announced earlier today that it had filed a petition to initiate insolvency proceedings with the jurisdictional district court at Augsburg, Germany.

The company said it was forced into this move after talks with an investor broke down earlier this week. According to Reuters news agency, "a European investor with experience in the engineering sector was in talks to buy Manroland, but financial investors currently have a hard time obtaining financing for takeover deals. The investor unexpectedly withdrew its offer on Monday, and talks to extend a three-digit million loan failed, leaving Manroland unable to pay its bills."


Manroland also pointed to what it calls a dramatic downturn in incoming orders that began in mid-July and has accelerated since then, particularly in the U.S. market and in Western Europe. The culprit, again, is difficulty in securing financing for the sales. At the same time, it said in a press release, intensive competition has led to even greater pressure on prices. The market size is now only at 50% of the level before the beginning of the crisis in 2008, according to Manroland.

In its announcement, Manroland said it aims to rescue key units within the framework of ongoing restructuring efforts. "The initiated insolvency procedure affords the opportunity to step up the restructuring process and guide the company through this difficult phase. Despite all the disappointment over the path that now has to be taken, the insolvency procedure as debtor in possession offers plenty of prospects because the company has compelling products, the necessary know-how, and an excellent team," it said.

Over the past couple of years all the major press manufacturers have faced financial difficulties and implemented layoffs. Manroland currently employs 6,500 people around the world.

More updates will be posted as they become available.