Feeds

Elsa derailed by closed credit lines

Insolvency looms

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Elsa, the German graphics board maker, will decides this week whether or not it files for insolvency, following the withdrawal of credit facilities worth eur 38m on Friday, February 15.

A member of the loan syndicate of eight banks has also told Elsa that it will not extend credit facilities worth eur 10m when this line expires March 31, 2002. In addition it is expected to make an unspecifed payment to the syndicate by Friday - the sub-text is that it unable to make this payment.

Without credit, Elsa looks effectively paralysed. Unless a buyer turns up tout de suite, the company has little option but to set the insolvency wheels turning.

Under German law, the management board of the company has to resign, making way for a new team. The decision to liquidate, sell assets, or carry on business as usual, is made by this new team. Of course, the latter is contingent on the company's ability to secure fresh debt financing.

Elsa late last year stopped selling and marketing retail graphics boards in the US, withdrawing to its European redoubt. The Gloria and Synergy workstation lines were unaffected by the move

As well as graphics boards, Elsa produces several connectivity hardware products. Founded in 1980, the company employs 600 people. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.