Rapid Granulator AB Granted Suspension of Old Debts

The Swedish company Rapid Granulator AB has been granted a suspension of old debts by the District Court of Jönköping Sweden. The suspension only affects Rapid Granulator’s Swedish operation. The court has granted permission for a so-called reconstruction procedure which – under Swedish law - allows the company to continue its business. This means the company will continue to carry out their business as usual, including the fulfillment of all service contracts, product guarantees and obligations.

“Rapid AB in Sweden has been affected by the global financial crisis, like many other companies. However, as the company is mainly supplying granulators to the production industry, the world-wide drop in production has had a severe effect on volume as well as margins,” said Rolf Gren, CEO of Rapid Group. “In recent months, we have seen a significant increase in sales and we have taken major steps to reduce cost in terms of travel and staff. Although this has improved our cash situation, unfortunately it was not sufficient. Unlike some of our competitors in other parts of Europe, we are not able to lay off employees on a temporary basis. Therefore, this reconstruction procedure is our only realistic option.”

“This is not a bankruptcy,” Gren added. “In fact, we have entered the process both voluntarily and in full cooperation with our Swedish bank partner, Nordea. This reconstruction process will lead to a stronger company that will be able to serve the market even better.”