[Leica] Leica article 21.2.2005 translated

[henningw at archiphoto.com (Henning Wulff)]

>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

I think you meant May 31st in both instances, not March.

-- 
    *            Henning J. Wulff
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