Hi Tim,
If you've been following the various threads on this subject over thelast few
days you may have already read some of my translations and comments.
timo@xxxxxxxxxxxxxxxxx wrote:
The whole thing about the german law forcing Leica to announce their figures is a security measure. The security demanded by the banks is naturally to avoid exactly what you wrote - same thing different wording.On Wednesday 23 February 2005 07:17, Douglas M. Sharp wrote:
The points to note here are: 1) Very probably, only those credit lines directly linked to the basic operation of the company are still open. ie for outstanding salaries,communal services etc. (ie the banks are very worried) 2) this infers that the credit lines for all other operational aspects are closed for the time being.(ie the banks are not prepared to back up present and future investments without some kind of security)
I don't think it's about security - the size of the losses is pretty staggering and my guess is that the banks are probably in "avoid throwing good money after bad" mode at the moment.
Indeed they aren't - you probably read it in one of my earlier mails
3)The banks are negoitiating a solution which will carry Leica through only until the end of March 2005. This is the deadline for the presentation of a new finance plan for the future of Leica.(Leica must develop and present a plan to satisfy a) the banks and b) the shareholders that the company has a future and is worth the investment)
Actually from what I read elsewhere, the extraordinary shareholder meeting is required by German law due to the losses exceeding more than 50% of the captial - it doesn't seem that it's *only* the banks that are pressing for time here.
Personally I don't see Hermes International going along with Leica in this situation and I expect we'll all get quite a surprise if and when futureinvestors/partners/owners are announced.
If there will be any - I'm not a doom sayer, but losses of that size will be a serious burden on any company, let alone one of Leica's size.
Or a Samurai ?
I wonder if we'll see either a "white knight" buying the remnants of the company and let it continue as their prestige marque, or if this is really it.
Of course, we may also be surprised by hearing that they'll outsource manufacturing to cheaper places and all that. Whatever the outcome is, it'll be interesting.
It certainly will Cheers from Hannover Douglas
T.
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