Xeikon is now
a protected species
Digital printing may be a hot topic, but it’s not just users who need deep pockets and strong nerves. Investors in Xeikon, for example, have their own anxious moments. Its subsidiary Xeikon France was the first to enter creditor protection procedures at the end of November, followed shortly by the parent company under applicable Belgian legislation.
A commissioner is currently supervising a Chapter 11 type of restructuring plan, which also means that the company can avoid paying existing debts for a while. Without this protection Xeikon NV, based in Mortsel, Belgium, would have been forced into receivership. It posted a net loss of $39.3 million for the nine-month period ended September 30, compared with a net loss of $18 for the same period in 2000. Revenues for the respected periods were $95.2 million and $130.35 million.
Four months earlier, Xeikon was seeking industrial/ financial partners to inject $40 million into the business, but discussions with interested parties failed to make progress.
As the world’s leading supplier of production digital presses, Xeikon says it will continue to manufacture, market and distribute its products while legal proceedings continue. These include the former Nipson-branded black-and white electronic printers. So far the subsidiaries in Germany, UK, Japan and the US have not filed for creditor protection and will continue to operate as usual.