[LRFlex] Leica article 21.2.2005 translated
- From: "Douglas M. Sharp" <DouglasMSharp@xxxxxxxxxxxx>
- To: LeicaReflex <LeicaReflex@xxxxxxxxxxxxx>, LEG <leica@xxxxxxxxxxxxx>
- Date: Wed, 23 Feb 2005 08:17:55 +0100
I already posted this on some other fora, so here it is again.
My translation may clear up a couple of points on what is happening over here.
Wallstreet-online reported in German.
Leica Camera: Banken kündigen teilweise Kreditlinien
Die Leica Camera AG meldete am Montag, dass die Banken ihre Kreditlinien
gegenüber der Gesellschaft teilweise gekündigt haben. Hintergrund dieser
Entscheidungen ist eine Meldung vom 17. Februar, nach der Leica davon ausgeht,
dass sich voraussichtlich im März 2005 ein Verlust der Hälfte des Grundkapitals
ergeben wird.
Die verbleibenden Linien decken den Angaben zufolge den derzeitigen
Liquiditätsbedarf noch ab. Der Vorstand verhandle mit den Banken über eine
Lösung, die das Unternehmen bis zu einer außerordentlichen Hauptversammlung am
31. Mai trägt, in der den Aktionären Kapitalmaßnahmen vorgeschlagen werden
sollen.
"Leica Camera AG announced on Monday that their banks have partially closed
the
companys credit lines. The basis for this decision is the announcement dated
17th of February in which Leica expects that the losses, calculated to March
2005,will comprise one half of the company capital.
According to information supplied, the remaining credit lines will cover the
current liquidity of the company.The board of directors and the banks are
negotiating a solution to keep the company afloat until the extraordinary
general meeting on the 31st of March when a finance plan will be presented to
the shareholders."
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)
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)
4)The new finance plan for the period following the end of March will have to be
approved by the shareholders at the EGM.
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.
regards from Hannover
Douglas
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