Leading Mauritius printing firm MSM on the brink of bankruptcy
The imminent insolvency, indicated in a cautionary announcement to the stock exchange of Mauritius on November 25, puts the future of over a hundred employees in jeopardy. (Image: Company)
An erstwhile leader in printing and packaging, the Mauritius Stationery Manufacturers (MSM) Ltd stands on the verge of bankruptcy, with debts amounting to around Rs 400 million.
However, a month’s timeframe has been allowed to restore the financial health of the company.
The imminent insolvency, indicated in a cautionary announcement to the stock exchange of Mauritius on November 25 puts the future of over a hundred employees in jeopardy.
The company, struggling to hold its head above water since 2011, is confronted with bankruptcy due to failure in obtaining the expected financial and operating results within the framework of the restructuring plan put in execution two years ago.
The board of directors has stated, that, in spite of best efforts since the start of financial restructuring, the company has been unable to turn around its operations.
Gerald Lincoln, managing partner, Ernst & Young has been appointed administrator of the company, pursuant to Section 215 of the Insolvency Act 2009.
For the last two years, MSM Ltd has undergone financial restructuring exercises, which it has communicated to its shareholders on a regular basis.
It appears that the main financiers are unwilling to invest additional capital, pushing the board of directors in turn to place the MSM under judicial administration.
Established in 1966, the MSM Ltd is a pioneer in the printing and packaging industry in Mauritius and in wider Indian Ocean region.
The MSM group of companies is part of noted Mauritian conglomerate GML, which owns 75% of the firm. A major regional business group, GML heads the list of the Top 100 Mauritian companies and is the third largest company in the Southwest Indian Ocean region.
In the cautionary announcement, the board has recommended that shareholders and the public in general show caution concerning transactions in the shares of the company and that they would updated on any further developments.