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Traction AB's Ankarsrum Die Casting AB Files for Reconstruction


Monday, 22 Apr 2013 07:22am EDT 

Traction AB announced that Ankarsrum Die Casting AB has on April 22, 2013 filed for reconstruction of the company. The reason is that the company's main customer, accounting for approximately half of sales of over SEK 70 million, has with short notice made reductions in the volume purchased. The reason for downsizing appears to be declining new car production in Germany, whilst the Swedish crown appreciation against euro resulted in a price increase. After negotiations with the German customer regarding price change for the reduced volume or maintained volume have not results in acceptable conditions, the customer intends to pursue a claim for complaint on deliveries made in 2009. The company was last in 2011 in a dispute that was legally unfounded and the customer has since not taken further actions, but continued to place orders for the products. With the remade requirements, combined with falling volume and a falling euro it means that the conditions for continued operation are unclear and that the company will not be able to pay its debts on its own as they fall due. It is intended that during the reconstruction the company initiate new negotiations with the customer, resulting in opportunities for continued operation or that the company can continue on a smaller scale with other customer base. The crisis in Ankarsrum Die Casting is not expected to affect the Company more than marginally. 

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101.5
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7:59am EDT