[Leica] Leica article 21.2.2005 translated

[douglas.sharp at gmx.de (Douglas Sharp)]

My translation may clear up a couple of points on what is happening over 
here.
Wallstreet-online reported in German.

Leica Camera: Banken k?ndigen teilweise Kreditlinien

Die Leica Camera AG meldete am Montag, dass die Banken ihre Kreditlinien 
gegen?ber der Gesellschaft teilweise gek?ndigt haben. Hintergrund dieser 
Entscheidungen ist eine Meldung vom 17. Februar, nach der Leica davon 
ausgeht, 
dass sich voraussichtlich im M?rz 2005 ein Verlust der H?lfte des 
Grundkapitals 
ergeben wird.

Die verbleibenden Linien decken den Angaben zufolge den derzeitigen 
Liquidit?tsbedarf noch ab. Der Vorstand verhandle mit den Banken ?ber eine 
L?sung, die das Unternehmen bis zu einer au?erordentlichen Hauptversammlung 
am 
31. Mai tr?gt, in der den Aktion?ren Kapitalma?nahmen vorgeschlagen werden 
sollen.


"Leica Camera AG announced on Monday that their banks have partially closed 
the 
companys credit lines. The basis for this decision is the announcement dated 
17th of February in which Leica expects that the losses, calculated to March 
2005,will comprise one half of the company capital.

According to information supplied, the remaining credit lines will cover the 
current liquidity of the company.The board of directors and the banks are 
negotiating a solution to keep the company afloat until the extraordinary 
general meeting on the 31st of March when a finance plan will be presented 
to 
the shareholders."

The points to note here are:
1) Very probably, only those credit lines directly linked to the basic 
operation 
of the company are still open. ie for outstanding salaries,communal services 
etc. (ie the banks are very worried)
2) this infers that the credit lines for all other operational aspects are 
closed for the time being.(ie the banks are not prepared to back up present 
and 
future investments without some kind of security)
3)The banks are negoitiating a solution which will carry Leica through only 
until the end of March 2005. This is the deadline for the presentation of a 
new 
finance plan for the future of Leica.(Leica must develop and present a plan 
to 
satisfy a) the banks and b) the shareholders that the company has a future 
and 
is worth the investment)
4)The new finance plan for the period following the end of March will have 
to be 
approved by the shareholders at the EGM.

Personally I don't see Hermes International going along with Leica in this 
situation and I expect we'll all get quite a surprise if and when 
futureinvestors/partners/owners are announced.

regards from Hannover
Douglas