The last European domino has fallen for Paperlinx as the German operation falls into administration after failing to find a buyer.
Local directors will continue to run the loss-making business under the supervision of a court-appointed trustee and keep trying to sell it or move towards liquidation.
“The decision to file for insolvency proceedings was taken by the local director given that attempts to divest this division over the course of the last few months have been unsuccessful to date,” the company says.
“The debtor in possession proceedings allows the business to continue to trade whilst continuing to seek opportunities to divest the operations.”
[Related: The ups and downs of Paperlinx]
The associated wide format machinery reselling business is solvent and will operate as normal under the local directors.
Paperlinx also has a lease liability on its German sites, and while it says it cannot be estimated, the annual report put it at $1.7m a year until 2020.
The company’s share price has climbed steadily in the past month, up 37 per cent, with investors betting the downsized Asia-Pacific operation will remain profitable.
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