Battenfeld in cash crunch

Beleaguered Battenfeld Kunststoffmaschinen GmbH is facing a crisis. The regional government of Lower Austria has stepped in to bail out the ailing injection moulding machinery producer with C$21-million emergency financing, as it faced imminent closure without such help. A sale of the main manufacturing operations by the owner, Adcuram Group of Munich, Germany, was cancelled a week ago, after acting managing director Georg Tinschert petitioned for insolvency.

The regional government is protecting employees’ jobs within Austria, but the company’s creditors may have to accept reduced payments as low as 20 per cent of what they are owed. Company debts, according to Austrian sources, might currently reach $48-million.

The Lower Austrian government has said in a statement that its liability for financial support to BKU will be decided at the next parliamentary session on January 24.

www.battenfeld-imt.com