Manroland's Insolvency Administrator: Agreement Reached With Creditors

Manroland AG's insolvency administrator said Wednesday an agreement has been reached with the printing machine maker's creditors on the company's future, which includes splitting it into three independent parts and cutting jobs.

Manroland, owned by Allianz SE (ALV.XE) and MAN SE (MAN.XE), has production sites in the German cities of Augsburg, Offenbach and Plauen.

The agreement calls for Manroland's production site in Augsburg and its rotary offset printing machine business to be divested to German conglomerate L. Possehl & Co. GmbH, which is also interested in a long-term supply agreement with the plant in Plauen, insolvency administrator Werner Schneider, of auditing firm Schneider Geiwitz & Partner, said in a statement. The Offenbach site will be redeveloped for a management buy-out in cooperation with an investor.

All parties agreed not to disclose the financial details of the deals.

Manroland employed 6,500 employees when it filed for insolvency in November. Of that number, 1,473 will be retained in Augsburg, 750 in Offenbach, and only about 300 in Plauen under the plan.

Neetha Mahadevan, Dow Jones Newswires; [phone]; [e-mail]