The move was announced on 17 April 2015. To overcome the business’s difficulties, the management team has announced a plan to sell off its paper converting machinery division, citing a ‘difficult market situation’ that has impacted its performance.
Beilomatik’s two remaining business units – which manufacture plastic welding and lubrication equipment – are performing better, and will continue with the company. As the company has not actually become insolvent, it will continue to trade as normal while it seeks a purchaser for its converting business.
Board chairman Alexander Wasserman offers the following reassurance: ‘Bielomatik is and will continue to do business with its customers and partners under the protective shield of Chapter 11. We are able to fulfil all customer orders as planned. Moreover, we can and will pay our orders with suppliers.’
The company has until mid-July to find a new owner for its paper converting arm. It has employed restructuring expert Arndt Geiwitzof Schneider Geiwitz & Partner to do this.
This article comes from Digital Demand World, which provides exclusive news and analysis on developments in digital print trends, markets, and technologies.