Hopes are rising that Austrian woodworking machinery manufacturer Holz-Her will survive after seeking bankruptcy protection under a €37m debt burden.
Administrators were brought into Reich-Austria GmbH and its parent company Holz-Her GmbH during January, but the business has released a new upbeat 2010 trading assessment coupled with a commitment not to dismantle the business and sell off the assets.
“We are in intensive talks with potential investors, which have a long-term engagement with Holz-Her,” said administrator Dr Jur Reinhard Schmid.
“The four products lines – edge-banding, beam saws, CNC machining centres and vertical panel saws should be preserved in their entirety.”
He said a clear upward trend was emerging, with a 30% increase in orders during the fourth quarter of 2009 (compared with 2008) and the order book extending to three months.
“Business operations will continue at their usual level,” Mr Schmid added. “All ordered machines and new orders will be delivered. Also, the service and spare parts for the machines in the future are absolutely guaranteed.”
The company still intends to exhibit at the Paris, Nuremberg, Poznan, Milan and India woodworking shows this year.
Holz-Her has more than 800 creditors and suffered a “massive” drop in business during the recession, according to The Alpine Land Creditors Association. It said a 50% fall in turnover to €50m in 2009 caused banks to reduce the company’s credit.
Holz-Her was established in 1914 and has 290 employees in Austria and 90 in Germany. It was taken over in an investment company-backed management buyout in 2008.
