Under the plan, Märklin will pay 33 million euros ($43.6 million) to creditors immediately. According to German newspaper Hamburger Abendblatt, the secured creditors — banks including Kreissparkasse Göppingen, BW-Bank and Goldman Sachs — will get the lion’s share of the payout, 27 million euros ($35.7 million).
Unsecured creditors will get 2.5 million euros ($3.3 million).
A Märklin release says a plan is in place to return 100% of claims if the company sells. The creditors’ claims had amounted to about 90 million euros ($119 million) in total, with approximately 61 million euros ($80 million) of that owed to the banks.
The company has a new CEO, Stefan Löbich, and will be overseen by Märklin Holdings GmbH, with a 3-person committee to monitor management including insolvency trustee Michael Pluta, former managing director Dr. Kurt Seitzinger and a representative of the creditors.
The company looked unsuccessfully for a buyer in 2010, and begins 2011 under its own steam. Pluta estimates the company’s 2010 earnings before taxes and interest (EBIT) at 9 million euros ($12 million) on sales of 111 millon euros ($146 million).
Märklin Trains entered bankruptcy in February 2009. Pluta credits two years of postive business as the reason that the firm is able to exit bankruptcy. Märklin has been a model train manufacturer for more than 150 years. For more information on Märklin products visit www.marklin.com.
Here's hoping the new management will discard the ancient ugly pizza cutter wheels on their locos and rolling stock and convert to modern NRMA standards like the rest of the world. That being said, their other standards are excellent, of very high quality and innovation. Hope they can recover, ok.
Have gone into Marklin train modelling with my dad since 1960 as a 11 year old kid. Am now 63 and my first starter set purchased in 1960 still running well. Now with 4 locos, three of which purchased in the early 80s, and 30 rolling stocks, my limitation is just my sitting room floor space (temporary with kind permission of the wife). That is the attestation of Marklin product and do hope Marklin will pull through.
I hope Marklin has turned the corner and has pulled themselves out of a very difficult time in their history. With new owners, the company is no longer being stripped of cash by investment bankers. I have noticed a major change in focusing back on their legacy of high quality (back to being made in Germany) and their product and technical development of the Marklin system that is unmatched by any other model railroad manufacturer. I can't think of any American manufacturer that has been as innovative as Marklin in having such a complete systems approach to model railroading.
I also hope that they stay open. AC is a nice system, particularly 3 rail. It really makes wiring simple. They definately need to make american prototypes to broaden their market.
I agree with David, and I think they would make more money if they went into the American market with a larger selection of American prototypes in D.C. and or even A.C.
I start with Marklin in the early 70's while stationed in Belgium and when I retired from military got into it again. Their products are solid, well made and have enough variety for most. I do agree that they are costly, but than what German product is not. I myself model (losely speaking) a fictional early German Bavaria railroad that I hope to finish someday.
Hope they make enough money to stay open