Koenig & Bauer gains headroom with new loan
Friday, July 17, 2020
Koenig & Bauer has applied for a German government backed KfW loan to help it ride out the coronavirus crisis.
The press manufacturer said the loan, of up to €120m (£109m), would “strengthen the stability and strategic flexibility of the group” and would supplement its existing credit lines.
Companies are not allowed to pay dividends during the term of a KfW loan.
Chief executive Claus Bolza-Schünemann said: “In parallel to the corona crisis management, we are working intensively on the Performance 2024 efficiency programme, evaluating various scenarios. In addition, improvements in working capital and cashflow are at the top of the agenda alongside the strategic focus on packaging printing and digital services.”
He said the €1.22bn-turnover group would “report promptly” on the targets and costs of the Performance 2024 efficiency programme.
The news was announced at K&B's 95th AGM meeting earlier this week, which took place as a virtual event for the first time due to the coronavirus situation.