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UPDATED: Mania Files for Insolvency |
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Written by Philip Buonpastore
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Monday, 28 April 2008 |
RIEDELBACK, GERMANY and SOUTH WINDSOR, CT – According to a company press release, after an "intensive internal examination," the company board of directors of Mania has determined “that the company is overindebted in the meaning of Insolvency law.” The release further states that “the insolvency filing of the company has no direct or indirect impact on the German and foreign operating subsidiaries of the company.” According to reports, the company is preparing a restructuring plan to include the entire Mania corporate group.
The company explains in its release that since the beginning of the year 2007, considerable price pressures resulting from weak demand and the continuing decline of the U.S. dollar have had a negative impact on the operating activities of the Mania Group and its holding company, Mania Technologie AG. Measures initiated by management to reduce product costs, in particular by reworking product design and transferring of assembly and procurement to China, were unable to compensate for the losses.
The board claimed that although the company is currently financially solvent, it reported that “it is overindebted in the sense of insolvency law” and will file for insolvency.
The company also claims that subsidiaries are not affected by the company’s filing and “will consequently not file for insolvency and, at the present time, there is no apparent reason for them to do so in the future.”
Ed.: The original reporting mistated that the company is filing for bankruptcy. In fact, it is filing for insolvency. We regret the error.
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