Newsletter #001 (View other news stories)
FUNDING APPROVED FOR CLARK EUROPE
Lexington, United States
Friday, 22 Dec 2000
LEXINGTON, USA -- Clark Material Handling Company's European arm, Clark Material Handling Europe, has had capital financing of DM30 million (US$15 million) approved to complete the manufacturing transition plan outlined in Clark's Chapter 11 reorganisation filing.
The funds from the European lender, which Clark did not name, increase the total capital available to Clark Europe to DM50 million.
Clark Europe president and managing director Frithjof Timm said the company was "pleased and elated" with the deal.
"The additional funds will enable Clark Europe to expand production significantly to accommodate the increased requirements for forklift trucks from European manufacturing operations," he said.
Last June, Clark had permanent debtor-in-possession financing of up to US$45 million from Congress Financial Corporation approved by the US Bankruptcy Court.
Clark will stop manufacturing operations in Lexington, Kentucky, and transfer operations to facilities in Germany, Korea, and Alabama, USA.
Citing difficulties with high costs and a "leveraged capital position", Clark filed for reorganisation under Chapter 11 of the US Bankruptcy Code in April. The move gave the company time, under federal protection from creditors, to develop and implement a plan to meet its debts and remain in business.
Part of the process is cutting 50 engineering positions at the company's Lexington headquarters, and closing the Lexington production plant before Christmas.
A Clark facility in Changwon, South Korea, will now produce Clark's three and four-wheel electric lift trucks. Internal combustion lift trucks from two to seven tons capacity will be produced in Mulheim, Germany; and Pell City, Alabama, will add Clark reach trucks to its hand and electric pallet truck range.
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