Large Scale Central

It is official, Märklin has declared insolvency

General Discussion
#21
Bob Burton said:
Hans-Joerg,

Did you not say that Marklin would be LGB’s savior??

Tim,

JJ said that Kingsbridge was the down-fall of Marklin & LGB, no where did he say Lehmann…


Bob,

That would be the day when I would use the word “savior” in conjunction with any of the fine messes that happen in this world! At least not without putting “saviour” in quotation marks and/or using at least one “Tongue in Cheek” smilie for good measure.

But by all means use the “Reply and Quote” function to prove your point. :wink: :slight_smile:

#22
Tim Brien said:
The English speaking news half hour 'DW-Germany' had a segment on Maerklin's woes. The 'refusal' of the bank involved to extend credit is simply a symptom of the current financial crisis. Funds have dried up and banks are finally being cautious with the money entrusted to them. There is a move (from employers) for German workers to work less hours per week.

Ethically, who is morally at fault - a company that cannot service its debt burden, or a bank that sees a bottomless pit in front of them. Marklin is simply a victim of its own financial circumstances. If banks had not of been so generous back in 2004, by extending loan credits again and again, then Lehmann would have collapsed two years earlier.


Tim,

Precisely, matter of fact there is a fairly detailed bit on just that in Financial Times Deutschland.

#23

Bob,
where were you back in 2006. JJ has been criticising Kingsbridge ever since the ill-fated Schoentag bid on Lehmann. JJ has history in this regard, not related just to current LGB/Marklin. JJ was a staunch follower of the LGBoA/G45 camp and was mysteriously silent each time the company failed to come up with enough money to outbid the Kingsbridge/Marklin purchase. He somehow blames Kingsbridge and Marklin for all Lehmann’s woes.

#24

Bob,
in JJ’s mind, there is only one LGB and that was EPL Patenwerk. When hunting you need to know your quarry.

#25
Hans-Joerg Mueller said:
Tim Brien said:
The English speaking news half hour 'DW-Germany' had a segment on Maerklin's woes. The 'refusal' of the bank involved to extend credit is simply a symptom of the current financial crisis. Funds have dried up and banks are finally being cautious with the money entrusted to them. There is a move (from employers) for German workers to work less hours per week.

Ethically, who is morally at fault - a company that cannot service its debt burden, or a bank that sees a bottomless pit in front of them. Marklin is simply a victim of its own financial circumstances. If banks had not of been so generous back in 2004, by extending loan credits again and again, then Lehmann would have collapsed two years earlier.


Tim,

Precisely, matter of fact there is a fairly detailed bit on just that in Financial Times Deutschland.


I guess that would make the answer A: Kingsbridge/Goldman Sachs made a stupid purchase.
How much of this debt burden is connected to the KB/GS purchase of Maerklin?
Another failed leveraged buyout?
Ralph

#26

Tim,

I doubt that it is an age-related case of selective or failing memory. :slight_smile:

On a lighter note: some studies show that between 3 and 5 cups of coffee a day will fend off Alzheimer’s to an appreciable degree. This came over the radio on the return from skiing, told SWMBO “Keep drinking the stuff, dear”. :wink: :slight_smile:

#27
Ralph Berg said:
...........

I guess that would make the answer A: Kingsbridge/Goldman Sachs made a stupid purchase.
How much of this debt burden is connected to the KB/GS purchase of Maerklin?
Another failed leveraged buyout?
Ralph


Ralph,

As your Commander in Chief put it so nicely in an interview: “I screwed up”.

BTW Ralph, did you get your wife’s creditcard to go shopping lately? :smiley:

#28
Hans-Joerg Mueller said:
BTW Ralph, did you get your wife's creditcard to go shopping lately? :D
What are you talking about HJ ? Ralph
#29
Ralph Berg said:
Hans-Joerg Mueller said:
BTW Ralph, did you get your wife's creditcard to go shopping lately? :D
What are you talking about HJ ? Ralph
Leveraged buyouts are like shopping with your wife's credit card, there's a time delay before the crap hits the fan! :D
#30
Hans-Joerg Mueller said:
Ralph Berg said:
Hans-Joerg Mueller said:
BTW Ralph, did you get your wife's creditcard to go shopping lately? :D
What are you talking about HJ ? Ralph
Leveraged buyouts are like shopping with your wife's credit card, there's a time delay before the crap hits the fan! :D
Ok, At first I thought maybe you haven't been drinking enough coffee =D Ralph
#31

HJ,
not only Alzheimers, but also bowel cancer. With the amount of coffee that I drink, then I will be immortal! Some have a short memory, others have a selective memory and in our case, we have a memory (and a conscience).

#32

(http://www.nytimes.com/images/blogs/laughlines/thehugemanatee.jpg)

Like I said, here we go again. Contemplating learning to scratchbuild live steam, then I’ll never have to worry about these dam insolvencies :frowning:

#33

Here’s the interesting question for americans: What does this mean for Slivergate(LGBoA)?

#34
Bill S said:
Here's the interesting question for americans: What does this mean for Slivergate(LGBoA)?
Probably nothing at all, since Marklin has already severed all ties with Silvergate.
#35

Silvergate is the Piko distributor in the States. Failure of Marklin/LGB could positively affect sales of the Piko brandname. Those who have followed the situation would have known that Silvergate divested its stock of LGB, prior to Jan 1st, 2009, as required by Marklin. This then made the way clear for Walthers to distribute the Marklin/LGB product line.

  One point I am unable to understand is why people still confuse Silvergate with LGBoA.  G45 was formed,  circa 2006 and was handed LGBoA as a gift.  G45 then morphed into Silvergate Distributors with a mere fraction of those at the helm of LGBoA,  still in employment at Silvergate.  The company,  LGBoA is a mere memory, a shell company,   languishing, collecting dust on a shelf.   Some still see it as the new messiah,  ready to resurrect the glory days.  Silvergate is a standalone company.
#36

All will be clear in the passage of time.

Just wait until next week.

#37

Hans-Joerg,

Lets test your memory!! I beleive that I said Kingsbridge Capitol would not be a good deal for either Marklin or LGB, but you said this will work out OK!!

#38
Bob Burton said:
Hans-Joerg,

Lets test your memory!! I beleive that I said Kingsbridge Capitol would not be a good deal for either Marklin or LGB, but you said this will work out OK!!


Ah, it must be going downhill, you’re back peddling already. :slight_smile: “Work out OK” is always relative to the other options that are/were on the table. It was by far the best option, even in retrospect with what happened since.

Soo what’s new on the insolvency front:

First action by the trustee (Michael Pluta) : dismiss all the consultants! (Very good move!) :smiley:

Other interesting development: clarification that the insolvency only concerns the German part of the company, Györ is a stand alone entity. (Remember my comment regarding the ironclad union agreement?!)

#39

Hans-Joerg,

You are the 1 that is back-peddling!! They have know fallen on there face, but you were sure it would be fine… Kingsbridge Capitol had all the money they needed…

#40

Oh I thought that rephrasing without the “savior” was quite a good example.

BTW they still have all the money they need for affairs like Märklin. Their problem is they would much rather use someone else’s money instead of their own and the banks aren’t playing that game. It’s all part and parcel of the “little credit crunch” as a result of the “toxic assets” which some people packaged so cleverly. No need to mention who those people are, is there? :wink: :slight_smile: