Home / Business Scene / Magma nearing conclusion of pre-bankruptcy settlement

Magma nearing conclusion of pre-bankruptcy settlement

The majority of Magma’s creditors have accepted the financial restructuring plan proposed in the pre-bankruptcy settlement process, prompting the Settlement Council of the Financial Agency (Fina) to instruct Magma to submit a proposal for the conclusion of the pre-bankruptcy settlement to the competent commercial court.

According to data from the resolution of the Settlement Council of Fina published today, at yesterday’s hearing where the restructuring plan for Magma was voted on, creditors representing 69.33 percent of claims against Magma supported the plan, while representatives of creditors representing 30.67 percent of the total reported debts of the company were against it.

According to the main provisions of the restructuring plan presented at the hearing, Magma’s future business strategy would be based on ‘new market drivers, 3D printing technology, and a new industrial revolution.’

As explained, the development of 3D printers and related technology has reached a level comparable to mobile technology in 1990, and further development, along with a corresponding reduction in technology costs and acceleration of the production process, ‘creates conditions for a new industrial revolution that will completely change the global flows of a large part of goods and services.’

Magma estimates that in the next three years ‘3D printers from the research and development departments of multinational companies will begin to change a significant part of the supply chain of goods and services as we know it today,’ and that ‘completely new activities will emerge in the market, consequently leading to new companies and new professions that will reshape a significant part of the goods and services market.’

According to the proposed plan, Magma would develop its business in two segments: 3D for children (www.turbolimac.com) and 3D for business users (www.magma.com).

In this context, www.turbolimac.com would be transformed into a platform that combines the functions of standard online sales, 3D design tools, social networking, and an auction portal aimed at children aged 7-15 years. Users would be able to design, order, exchange, sell, and buy items in their own or licensed designs, produced in their own home or store. The site would be localized in all EU languages this year, making Magma’s market effectively the EU market.

The pre-bankruptcy settlement process for Magma was opened on February 19 of this year, when the total debts of the company were determined to exceed 527 million kuna. Creditors reported nearly 496 million kuna in claims during the process, the established claims amount to 541.5 million kuna, and disputed claims are around 8 million kuna. After the offset, the total amount of established claims with which creditors participated in the voting was 479 million kuna.