Agfa looks to be going away now

[Jay Lnch]

Agfa Photo just filed for Bankruptcy.....

I used there paper, film and chemicals.... Now what do I do?

[Gene Crumpler]

Don't dispair too much. Just because they are filing for protection from their creditors, does not mean that they are out of business. Ilford did this last year and they are still making most of their products.

In the mean time read up on how to coat glass plates :>)

[Philippe Gauthier]

Yes, but on the other hand, the German law on insolvency is much harsher than the US one. I've been told that most companies who file under this law eventually disappear. So the crisis is serious.

My gut feeling, however, is that they'll find a way to save AgfaPhoto. But the road from large firm to niche provider is a difficult one.

[Eric Rose]

Actually I think this is a good move on the part of the investors. German wages are outrageous and no one can compete in todays market burdened with that kind of overhead.

My guess is they will let the company fold, buy up the machinery, send it to India or some place like that and re-emerge under a slightly different name.

Just my 2cents.

Eric

[Brian Ellis]

Why is it necessary to file for bankruptcy in order to move a business to India? I know nothing about German bankruptcy laws or German laws in general but certainly here in the U.S. companies can, and all too frequently do, just up and move businesses or segments of businesses out of the country without declaring bankruptcy first.

[Shtativ]

Hallo! I live in Russia and love AGFA too. When I have learned about plans of phase-out of films, I have written the letter on agfa.com, that they did not stop manufacture. And in 06/2004 I`ve received the answer! Here it:

Dear Mr. Sirxxxxxx,
Thank you very much for your kind message. We have heard about rumours in Russia about Agfa planning to stop film production which are certainly a great annoyance. I may assure you that these rumours are nothing more than a misinterpretation of our recent press release announcing the reorganization of the Agfa group. Tese measures will not have any effect on our product portfolio as well as on our sales strategy.
In fact, Agfa will massively increase sales of colour negative films, especially of our main brand Vista, in Russia this year. We have created a new localized package design for the Russian speaking markets. Later this year Agfa will even introduce improved emulsions some of our Vista films. You see, we not only continue investing into film, we even consider it as the central part of our product portfolio for the forseeable future.
Let me thank you again for your loyalty to our brand. We will dedicate all out efforts to justifying it also in the future.

With best regards
Ralf Kemsies
________________________
Regional Sales Manager CIS
Agfa-Gevaert AG
Tel. +49-221-98544-3679
Fax. +49-221-98544-3805
----- Weitergeleitet von Ralf Kemsies/AJKEM/LEV/AGFA/DE/BAYER am 07/06/2004 17:14 -----
Jessica Koziolek
03/06/2004 09:20

Therefore AGFA will live! :)

[Thilo Schmid]

There are rare cases where investors take over a company and break it down. But this usually does not takes place in a privately held company, like AGFA Photo was in its final stage. To file for Insolvency does not make any sense for an investor. The management is said to hold a share of 25% of AGFA Photo. AGFA Photo was actually a Management Buyout. It seems to be unfair to allege that the management (or an investor) has done this intentionally.

Insolvency means in this case, that there is not money left to pay outstanding depts. In order to recover from insolvency, there has to be someone who provides additional money or Creditors who (partly) abandon their claims. A Creditor (esp a bank) will only do this, if he sees a chance to get more money in a later stage. And being in a shrinking market is not very helpful in this regard. The shreholders may continue with their business if there is something left after the creditors have been serviced from the utilization of the assets. And of course can someone "from India" now make an offer for these assets. But it is unlikeley that the current investors will pay here for something which they alredy own (except in the case where they a contend for shares - 5 months after the MBO).

Amateurs and professionals have never played a major role in the income of the large market players. And AGFA used to be a large player according to production capacity and marketing overhead. Ilford was in a totally different position here. It is not “our” fault that AGFA went down – it is because the company didn’t manage to shrink with the same speed as consumers refrained to buy their products. Digital Photography is only one reason for that. Western Economics may be another reason.

We should be realistic. It is and was clear, that the variety of traditional film products will decrease. This is sad for AGFA, its employees and customers, but it is neither feasible to keep things running artificially nor is it helpful to mourn the loss of every product. This is not the end of traditional photography. In the opposite, this will help the remaining manufacturers to survive and to continue to supply us with such products.