Hi all,
There finally is some mention regarding the unresolved situation at EP Lehmann GmbH & Co KG in today’s (Mar22nd 2007) Nürnberger Nachrichten.
My translation to follow, but by all means use the Google translator if you prefer that.
Pre-translation summary: it doesn’t look good!
Oh, that’s certainly the case. However, their other options are
limited, not zero, but limited. And they must deal with some very
visible political issues, i.e., the preservation of local jobs and
the public opposition to Marklin…
http://www.suedwest-aktiv.de/region/nwz/goeppinger_kreisnachrichten/2756294/artikel.php
http://www.stuttgarter-nachrichten.de/stn/page/detail.php/1384073
I’m anxiously awaiting your translation. Personally I find that “Googlefish” sucks.
OK, it was first things first, which in this case meant cooking supper. More so since we have a house guest.
Here goes:
Nürnberger Nachrichten 2007/03/22 said:
[b]LGB again looking for a new investor.[/b]“Saviour” Hermann Schöntag has financial problems - company to be preserved as a whole at all costs.
Nürnberg - A surprising turn in the LGB case. The production, at the just recently from insolvency rescued company, stopped as of yesterday. The feverish search for a new investor is on to guarantee the continuance of the enterprise.
Insolvency trustee Steffen Goede as well as the private investor Hermann Schöntag confirmed to this paper that difficulties were encountered while executing the existing takeover plans. The company announced simply that at the moment there is no necessity for an announcement.Schöntag was the winning bidder in December when the creditors’ assembly decided in his favour and he assumed the company at the beginning of the year by starting a newly structured limited company (GmbH &Co KG).
However as now transpired, Schöntag is unable to raise the necessary, negotiated funds for the takeover. “Private co-investors which gave me verbal assurances, were unfortunately unable to keep their promises.” explained Schöntag. The result: The private investor was suddenly short an amount in the single digit million range, which his banks wouldn’t loan him either - despite the City of Nürnberg’s intervention on behalf of the
investor. “It was never my plan to assume sole responsibility for LGB.”The negotiations with the banks happened for Schöntag at a most inconvenient time. He is also owner of the Rügen Railway and as the operator receives in that connection a monthly six digit sum from the State of Mecklenburg-Vorpommern. However that operator’s contract is up for renewed bidding for 2008 due to legal stipulations regarding the bidding process - even if Schöntag will , most likely, be the successful bidder.
In the meantime all involved parties are working on an alternative solution for LGB. Everyone is in agreement that a split-up of the company needs to be avoided at all costs. Especially Schöntag is in intensive negotiations with potential investors, who as a first step would have to provide start-up/operating financing. “The decision has to be soon” said Schöntag. The production has to be resumed, bills and salaries have to be paid.
Insolvency trustee Goede confirmed that, parallel to Schöntag’s negotiations, he is holding direct talks with potential investors. “However, the negotiations are not to be viewed as in competition with each other” emphasized the lawyer. It is strictly a matter of arriving at the optimal result for the company, the location “Nürnberg” and the 130 jobs.
What complicates the search is the unresolved legal question between the local LGB and LGB of America. Both lay exclusive claim to the worldwide trademark rights outside of Germany. Insiders consider the German position as more promising.
Hornby, Märklin, Piko?
Experts mention model railway competitors Märklin, Piko and Hornby as the most likely interested parties, since all of them participated in the first round of bidding for LGB. Particularly market leader Märklin, who with the help of Kingsbridge Capital narrowly avoided insolvency, has openly voiced a continued interest, despite loosing out to Schöntag. The management level at Piko reports that there have been talks in the past. Basically one is still interested. Only Hornby disclaimed any interest. It is a completely open question who will swing out on top. Even a presently unknown investor is a possibility. Still nebulous is the role Schöntag himself will play at LGB.
Gregor Le Claire
PS So far no update on the Insolvency Court website.
Note on the translation (strictly for those who usually know better): I’m neither a certified nor a professional translator, but I have a very firm grasp on the German and the English language and the nuances that are involved when doing translations. 
Thank you HJ.
The quietness on the west side of the pond is what has me pondering…Hmmmmm 
Somebody is up to something…it’s just a matter of what…and when. The ownership of the LGB trademark will have to be resolved before the matter in Germany can be resolved. That will definitely make the papers…but when? Currently all is quiet.
TonyWalsham said:Tony,
Thank you HJ.
You’re welcome!
Perhaps there will be a proclamation from the Insolvency Court in the near future.
The “verbal assurances” concerning third party money participation has to be a “new concept”!
I always thought that the Insolvency Courts deal in “realities” rather than “possibilities”. Hmmmmmmmm … I guess I have been wrong again.
Hans-Joerg Mueller said:Hans..... It must be the politics of keeping the jobs where they are that brings it to this point. The Politicians so want not loose the jobs and gross for tax purposes they may have influenced the decision process...... or maybe this is just a new thing in the courts....or maybe smoke to cover other deficiencies as I mentioned before in another thread.TonyWalsham said:The "verbal assurances" concerning third party money participation has to be a "new concept"! I always thought that the Insolvency Courts deal in "realities" rather than "possibilities". Hmmmmmmmm .......
Thank you HJ.
mark
Hans-Joerg Mueller said:Will this be the fly in the ointment?
What complicates the search is the unresolved legal question between the local LGB and LGB of America. Both lay exclusive claim to the worldwide trademark rights outside of Germany. Insiders consider the German position as more promising.
…and probably why we havent heard anything from this side of the world in a while.
There is a bit more German News to translate … coming up ASAP
Mark,
The job situation has some bearing, but that’s not the lone snag. The City of Nürnberg trying to assist - without the desired results - is certainly an eyeopener. Several months back (Sept 2006) there was an item in the Nürnberg paper regarding council’s questions in regards to the “assistance”. Looks like, short of an outright loan guarantee by the city, there’s nothing doing.
Vic,
I don’t know if someone counted the flies in the ointment, but apparently it is not as clear cut as it was painted back in December. Just how convoluted the whole thing is is anyone’s guess.
While the official channels were very quiet, there was plenty of din from different directions (including the “reliable sources” and all kinds of “experts” who have been gazing into crystal balls). Prognostications galore with precise dates, which for some reason always passed without any News. Just like prophesying the second coming.
Ah well …
…“and in the third year, it arose from the ashes, and shipped track all over the world…”
Fr.Fred
…and bets are on, that it will be gold plated track…!!!
Please Father, forgive me! :lol: :lol: :lol:
Fred Mills said:Nah, brass sold at gold-plated prices. I'll put a nickel on that.
....and bets are on, that it will be gold plated track.....!!!!
Hans-Joerg Mueller said:
Please Father, forgive me!
For you know not what you do? Couldn’t resist.
Miserere me peccatorem!
Chris Vernell said:Dont you mean nickel plate ???Fred Mills said:Nah, brass sold at gold-plated prices. I'll put a nickel on that.
....and bets are on, that it will be gold plated track.....!!!!
Update from the “Nürnberger Nachrichten”
NN said:
[b]"Case LGB" causes consternation.[/b]Union representatives and Fans react concerned.
The News of renewed problems at Nürnberg model railway producer LGB caused consternation among union reps and fans.
“That is not good News” commented Andreas Weidemann, the representative of IG Metall (Industrial Union of Metalworkers) Nürnberg, who handles the LGB file. Now one needs to rescue, what can be rescued. “In my opinion this has to happen as soon as possible, since the company has lost its presence on the market and is unable to deliver goods.” Furthermore, he knows that payments of some wages are now in arrears.
On the other hand Weidemann has an uneasy feeling in regards to Märklin as a potential investor. The market leader in the model railway industry has a reputation for outsourcing to other countries and announced in the first round of bidding that jobs will be eliminated should their bid succeed.
There is a mixture of emotions among the LGB employees. “We are ready for any eventualities” is how one put it. But he still believes in a happy ending to the story. However, other employees are deeply concerned and apprehensive regarding the future, as well informed sources mentioned.
The sympathies of the colleagues at Trix, who are also worrying about their jobs, are certainly with the LGB employees. “We are very sorry” said Bernd Sickinger, union steward at Trix and mentioned a “catastrophe for Nürnberg as model railway production location”. One had now to assume that jobs would be eliminated. Many of the LGB fans expressed their concern regarding the company in the Internet fora.
Victor Smith said:Love those NKP Berkshires.Chris Vernell said:Dont you mean nickel plate ???Fred Mills said:Nah, brass sold at gold-plated prices. I'll put a nickel on that.
....and bets are on, that it will be gold plated track.....!!!!
HJ-
Thanks for the input.
Warren, I think, has the key question as to what is first in the ownership process. The point is until the trademark and rights of useage are established — e.g. owned by LGB of America or the German LGB? – what is there to buy or own? No matter who is the owner of the German house, there is still the question of trademark ownership. For whatever the trademark is worth, it will show itself.
Wendell
Wendell Hanks said:
HJ-Thanks for the input.
Warren, I think, has the key question as to what is first in the ownership process. The point is until the trademark and rights of useage are established — e.g. owned by LGB of America or the German LGB? – what is there to buy or own? No matter who is the owner of the German house, there is still the question of trademark ownership. For whatever the trademark is worth, it will show itself.Wendell
Quite correct.
If, for one instance, we assume that Märklin did due diligence and then bid, I would surmise that EPL was being offered as a going concern with all assets (fixed, mobile, intellectual properties, patents etc.) in place and included in the deal.
Since Märklin apparently is still interested, I would surmise that those conditions still apply. It would be the very first time that I hear that a large reputable company - that is even older than EPL - would have hired a large international financial adviser/acquisition specialties company to “check things out” and then be burned.
But as we know: there’s a first for everything.
On the “what is there to buy or own.” Hmmmmm … indeed! And won’t the financial institutions have a regular fit if the company is worthless and their collateral not worth the paper it was listed on.
I haven’t found out a lot about the new insolvency law in Germany (still reading), but strictly going on what I have read thus far: the banks (as lenders) are solidly in the driver’s seat when it comes to insolvencies. I have my doubts that the German banks are any more lenient than the Canadian ones. The Canadian ones have a reputation of exacting a severe toll on small to medium companies’ bankruptcy proceeds. Of course that is after the government made sure that it got its dues. Of course the big guys get away with a lot more, but EPL isn’t in that league.