SCX/Tecnitoys - Big Trouble??????

[Cjent]

Got this from a Spanish press release of "Economicadigital". IMHO, doesn't look good.

The shareholders' meeting of the company Tecnitoys, Scalextric licensee in Spain, approved last Thursday to present to the court the books of the company and urge the bankruptcy. In a turbulent meeting, representatives of International Winkler - society as industry media represent the interests of the family Arnau - imposed the measure despite strong opposition Hemisphere Investment (instrumental family company Lara) and refraining from Fornesa Thomas, another toy relevant partners.

As explained financial sources, on Monday have been informed of the decision by the partners. The surprise has been between banks, as there was a preliminary agreement renegotiation very advantageous for the company that had been negotiated in recent months.

11 million bank debt

Banks are a dozen creditors and debt totals some 11 million between direct loans and current operations, says the manager of one of the creditors. The banks financing to Tecnitoys are Banco Popular, Deutsche Bank, Banco Pastor, La Caixa, BBVA, Santander, Banesto, Catalunya Caixa, Bankia, Spain Fund, Ibercaja and Banc Sabadell.

The preliminary agreement with the banks - which included a debt relief and an overall refinancing - was practically solved and joined with all other similar financial creditors, also at a discount, in this case 50%. Similarly, the company had liquidated its entire workforce before summer agreed form.

Balance unformulated

Since the banking sector is still unknown ensures that exactly the person who presented the company, since the confrontation between the partners made no final balance to present to the court. According to the same sources, the move would address Winkler interests, and not the company or creditors. So do not give up control Winckler future Scalextric license that forced him to mortgage banking in the last refinancing.

Negotiations on behalf of the company had been carried out by the former vice president of SEPI Jordi dagger, which has declined to comment on what happened claiming that "resigned" from his position as CEO of Tecnitoys.

The question of Educa Borras

The big question now is to know what will happen to the group that was presented as lifeline of Tecnitoys and its creditors. These Educa Borras, who signed the acquisition of the business assets, inventories, molds and brand license. Education had agreed to assume the debt plus bank injected funds to cover other debts.

A bank manager who participated in the talks leading up to the decision of shareholders to Digital Economy noted that negative equity can Tecnitoys be around eight million euros. In 2011, the toy turnover worth 6.5 million, a year earlier, revenue slightly exceeded eight million.

[waaytoomuchintothis]

That doesn't look good. I can only hope that the strangeness of the economic situation has caused the more timid folks to try to bail. Still the ways of business dealings there are very odd. Think of Chinese Algebra mixed with Stratego and Battleship. I did business with German, Italian, British, French, Swiss, and other European banks, but the systems at work in Spain were so convoluted and strange we never dedicated time to get set up with them. Of course, that was 4 years before the existence of the Euro-- things change.

[Capn Jodi]

Chuck asked me to post this today. More confusion?

Further Tecnitoys News from a Spanish Slot Car publication:
SCX:
TRANQUILITY

ALBERT BOET
Jorge Arceo to Slotcar Today: Scx remains and will
We have witnessed since yesterday a sensationalist media bombing with alarming economic news about one of our slot brands pillars, SCX. From ignorance, from writing and rewriting of a press release, doubts have been harmed and raised.
For months from Slotcar
Today we have been reporting on the evolution of Scx, since the cessation of Tecnitoys to the last ad spending proposal for the upcoming Christmas season, through all the steps that led to the agreement with Educa Borras, through its subsidiary Fabrica de Juguetes, for the relaunch of the brand.
That the processes in which are immersed large companies as they enter in liquidation processes and bankruptcy situations are complex escapes no one, especially when the business conglomerate and shareholders becomes difficult to ubscramble. The news that Tecnitoys goes into arrangement with creditors would go unnoticed in the set of similar situations of many Spanish companies. But their association to the name Scx has led to all newsrooms in warning lights at the prospect of publishing a story with hook. Few have been the media who care to delve into the real situation of Scx, few have been able to take an interest in the position of the current Scx licensee in Spain, Fabrica de Juguetes. What worth, what was going to sell the news that Scx have their days numbered. A Europa Press news not contrasted has been magnified. How far is the reality!
What a pity that the crisis has affected journalists of the media to take for good news that generates injury to a highly competitive company as Educa Borras! Does anyone believe that a brand that is dead poses a huge investment in TV advertising for next season?
Slotcar Today wanted to know the opinion of Jorge Arceo, Fabrica de Juguetes Director of Marketing, current Scx licensee for Spain, before posting any comments on this story.
Jorge Arceo stated this morning to Slotcar Today that he was shocked by the size that had taken a story that has been known since a month ago when was held the last Tecnitoys shareholders meeting. "The situation of bankruptcy does not affect our business. We have signed a bridge contract with Scx until March 31, 2013, a contract that could not be extended more due to the aspects that had to be reviewed when the situation with Tecnitoys is arranged. This means that ensures the continuity of the mark Scx, one way or another. We will fight for it and in fact we are working as if the continuity is assured." An arrangement with creditors all that means is that changes the interlocutor but Fabrica de Juguetes is confident to continue with Scx rights for many years.
Jorge Arceo laments this sensationalism which has fallen certain media and has already begun to work with its communications agency for transmitting to all consumers the tranquility with which Fabrica de Juguetes is facing the commercialization of this Scx license leader in the toy market.
Is clear that Scx will continue, now with Fabrica de Juguetes, and as of March 31 with themselves or with another who takes over, but will continue. There are SCX for years.

Hope it serves for knowing the real situation, not what media want us to believe.
Cheers

[goosenapper]