German Schlecker manager examines application for state aid 2012
Due to the bankruptcy risk of unemployment Schlecker employees may still get help from the state. Arndt Geiwitz liquidator will provide a loan application to the state-owned KfW development bank, he said on Friday. The money should be used as interim financing for the construction of a transfer company, which could change in the 12,000 employees threatened with redundancy.
The request is a change of course in favor of workers threatened with unemployment and with some difficulties. Originally Geiwitz want to quickly talk about a wage reduction of the remaining Schlecker employees to clean up the rest of company for which he and an investor will find it so at least save some would like. The employees, however, had pushed in recent days to take more time, and to organize public support for it. A KfW application would have been a small step in that direction. The money would help Geiwitz while not in its original plan to renovate Schlecker. The money would the company do not benefit the people employed there in the future would have none of it.
It would, however, if it would be granted in the short term, help the people affected by redundancy. You could then switch to a first transfer company to continue the form they would pay for a limited period. Geiwitz had previously expressed a negative, because such a society would have to be co-financed by the company and the fund Schlecker no money to do that. He estimates the capital needs of more than 70 million €. With the credit problem would now be bypassed initially. However, the company would have to repay the loan later, would therefore make more debt.
Due to the bankruptcy risk of unemployment Schlecker employees may still get help from the state. Arndt Geiwitz liquidator will provide a loan application to the state-owned KfW development bank, he said on Friday. The money should be used as interim financing for the construction of a transfer company, which could change in the 12,000 employees threatened with redundancy.
The request is a change of course in favor of workers threatened with unemployment and with some difficulties. Originally Geiwitz want to quickly talk about a wage reduction of the remaining Schlecker employees to clean up the rest of company for which he and an investor will find it so at least save some would like. The employees, however, had pushed in recent days to take more time, and to organize public support for it. A KfW application would have been a small step in that direction. The money would help Geiwitz while not in its original plan to renovate Schlecker. The money would the company do not benefit the people employed there in the future would have none of it.
It would, however, if it would be granted in the short term, help the people affected by redundancy. You could then switch to a first transfer company to continue the form they would pay for a limited period. Geiwitz had previously expressed a negative, because such a society would have to be co-financed by the company and the fund Schlecker no money to do that. He estimates the capital needs of more than 70 million €. With the credit problem would now be bypassed initially. However, the company would have to repay the loan later, would therefore make more debt.
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