Schutzschirmverfahren (shu̇ts-ˌshir-m fər-ˈfä-rən): a German word literally translated as “Protective Shield Proceedings,” but in practical terms, it is the German equivalent of a self-administered, court-supervised proceeding under Chapter 11 of the US Bankruptcy Code.
Exit, Consolidate, or Invest
Despite the recent spate of numerous plant closures and total plant auctions, we do not see evidence of widespread company failures in the printing industry. Rather, recent transactional activity suggests something more structural at work. The industry is not collapsing; it continues to be sorted out by market forces as the demand for printed products changes.
Three distinct pathways are emerging: excess capacity is being wrung out of the system via company and plant closures, often outside formal restructuring processes; core mature print markets are continuously consolidating through many, sometimes small, local transactions; and capital continues to flow toward the growth segments, in particular packaging and digital print technologies, albeit at a much slower pace than in previous years. Together, these dynamics are reshaping the printing and packaging industry from the inside out.
Wrung Out – Manroland Sheetfed Files Bankruptcy
One of the most highly respected manufacturers of printing equipment, Manroland Sheetfed, entered into bankruptcy proceedings in Germany under that country’s Insolvency Code, which provides the option for management to retain control of the company while restructuring, rather than being replaced by a court-appointed administrator.
Read this full story on Printing Impressions, a publication of PRINTING United Alliance, ASI’s strategic partner.
