SWEDEN - Bank takes over ex-Nordic Capital owned Plastal units

The three units will form a new group under the name Plastal Industri AB. The work force of approximately 600 employees will all be offered jobs in the new group. The chief executive of Kongsberg Automotives's Swedish subsidiary, Per-Ewe Wendel has appointed CEO.

In connection with Plastal Holding going into administration in March, Handelsbanken announced its exposure to the company to be SEK 2.1bn. According to the statement made by the bank, the previously granted acquisition credit has been repaid in full.

Nordic Capital cited the downturn in the automobile industry, which has seen projected market volume in the first two months of 2009 drop by 40% compared to 2008, as the main reason for Plastal's financial troubles. Additionally, the state of the credit markets made it impossible for the company to finance customer receivables. Efforts to reduce costs, divest non-core entities, and obtain external capital failed to rescue the business, which also received a capital injection from Nordic Capital in January this year and applied for an emergency loan from the Swedish government.

The new group is said to already have a sound customer base and positive cashflow in addition to new management.

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