Contact:
Newsfox Desk
Phone: +43-1-811 40-319
E-Mail: editor@newsfox.com
| Pressbox | 
|
Nuremberg (pte030/14.04.2003/13:11) - The Nuremberg-based German electronics company, Grundig http://www.grundig.de , has lost its battle to save itself from financial ruin. "We've had to file for insolvency," said Grundig's Chief of Finances to Reuters today after potential Turkish investor Beko Electronics finally withdrew its takeover bid last week, thus cutting off Grundig's final hope. "The risks presented by the current economic climate played a major part in the investor's decision," a Grundig spokesman said.
The largest consumer electronics producer Grundig has been struggling for several years, and looking for a financial partner. At the beginning of this year, the Taiwanese electronics company Sampo was negotiating a deal with Grundig. Two months later the offer was withdrawn when Sampo could not secure loans from European banks. Creditor banks, Deutsche Bank, Dresdner Bank, Bavarian State Bank and Bavarian State Foundation for Structural Financing have terminated Grundig's line of credit.
At the height of business Grundig employed about 38,000 workers. Now, with outstanding debts that are estimated to be worth about 210m euros, it currently employs only 3,500.
The court's decision about the insolvency of the company that was founded in 1945 will be made during the course of the day.
(end)
|
|
