By Editor Morten B. Reitoft
The never-ending story about benpac can add another chapter to its colorful tale. Benpac Maschinenbau, the company, recently located in St. Gallen, and assembling equipment from Gallus and Amsler Equipment has been taken under liquidation in St. Gallen.
The story is hilarious for the outsiders - tragic for the people involved. July 16th, benpac announced the moving of benpac Maschinenbau from St. Gallen to Stans. In the announcement, Corvi says, "...relocating its business activities to the headquarters of benpac holding ag in Stans," so what appeared to be a move of the company may only be the movement of activities? With the Harzbühlstrasse 34 as the address in the liquidation papers - first of all, there are probably no assets, no activities, and the only thing an empty hall - at the same address as Gallus.In the announcement from July, Corvi also claimed that all employees in St. Gallen have been offered jobs in Stans. Two things sound a bit hollow, however. First, Benpac Holding has been kicked out of the Stans building, but even more hollow is how Corvi blames them for everything going wrong in his regime in a letter to employees.
See the full letter attached (frame to the right.)I wouldn't set my hopes too high ever to get deliveries for customers who are STILL awaiting deliveries of machines from Amsler Equipment.
Several sources in North America have told us that customers have placed orders, paid the down-payment, and haven't seen any deliveries. When Amsler Equipment was closed months ago, Corvi announced the production moved to Niigon. But apparently, the bills haven't been paid, and weeks ago, Niigon had to file for bankruptcy. Niigon was building machines that were picked up unfinished by upset customers seeking completion of the machines by themselves.What this is all about is still not clear. However, that Heidelberger Druckmaschinen could get involved with benpac and Marco Corvi must be one of the company's regrets. How Heidelberger Druckmaschinen was able to get satisfying solvency reports from any benpac company is, to us, a mystery.
Jo Francis from Printweek writes the following February 1st, 2021:"Heidelberg also defended its due diligence process. "The management board and the M&A team involved on the Heidelberg side carefully managed the entire sales process, including in accordance with customary standards and with the support of renowned consultant – this also includes checking the solvency of the purchaser. The closing was not completed for reasons beyond Heidelberg's control," the spokesperson stated."
How Heidelberger Druckmaschinen could accept a personal guarantee - which later is stated being "an additional guarantee" from Corvi is an even bigger mystery?Is it now over for benpac?
Well, probably not. Rumors are that Corvi continues to approach companies to acquire them - but for what money? Fortunately, the noise the benpac/Gallus acquisition has raised awareness in the market, and makes it easier for everybody to find information about Corvi and Benpac avoid getting involved without securities.
And no. Seeing a bank statement isn't a guarantee!!What a guarantee is, is, however, a question that seems up for interpretation, so we will ask around to give us an understanding of the word and meaning in M&As. We were so naive to believe that a guarantee was a certainty for something to happen - but apparently not.