Gehl May Face Bankruptcy
April 13, 2009 – Under pressure from its bankers, West Bend, Wis.-based Gehl Co. must either forge new loan terms or face possible bankruptcy, its new owner Manitou has said, according to various media reports.
After the construction equipment maker violated conditions of its loan agreement, Gehl's bankers demanded March 31 that it make early repayment of about $118 million of financing, the Manitou Group said in a recent statement announcing 2008 results.
Manitou acquired Gehl last year for about $310 million. The acquisition has hurt the French material-handling equipment maker's finances. Gehl contributed about $26 million in the last two months of 2008 to Manitou's revenue of $1.68 billion for the year. That only partially offset the more than $31 million negative impact of changes in the currency exchange rate, Manitou said.
To read the full story, visit the Milwaukee Journal Sentinel.
