The financial woes at German precision injection moulder Balda (Bad Oeynhausen; www.balda.de) are more serious than previously believed. Following an ad hoc statement on 5 March 2008, in which the company said it did not have “sufficient cash on hand” to cover the 2007 losses at mobile phone moulding spin-offs Balda Solutions Deutschland, Balda Werkzeugbau and Balda Solutions Hungaria, analysts speculated about a possible bankruptcy.

Without revealing exact numbers, Balda dismissed reports that losses at the three companies sold last year to KS Plastics Solutions topped EUR 30m. The sum is “below EUR 30m,” a spokesman told newswires. The company had planned to present annual results on 19 March, but has postponed this as well as the annual general meeting (agm) scheduled for 7 May. Faltering talks with the workforce at the German spin-offs over severance pay were due to go to arbitration on 7 March – see Plasteurope.com of 28.02.2008.

Profit and loss transfer agreements with the former businesses units stipulate that Balda will bear their losses for 2007. The recently concluded annual financial statements for the two German companies “exceed previously planned and budgeted numbers,” the former parent said, adding that it is “in negotiations” with the firms regarding the extent of the loss to be covered and about a payment plan. It is also talking to its banks about “additional credit facilities.”