Skako takes a write-down as Denka files for bankruptcy

Skako A/S (CPH: SKAKO) notified the stock exchange after market close that it is to write-down receivables related to the sale of its trailer lifts part of Skako Lift A/S manufacturing to newly formed Denka Lifts AS last year by 9 million DKK. Skako said at the time that the divestiture will result in a positive cash flow for the company.

Skako said that other than that its operations have developed favourably, with 2011 results for continuing operations improving from a deep loss in 2010 to nearly break par. It also said the same trend has continued in 2012. Annual accounts for 2011 are due on March 21st.

Denka Lift Denmark was formed last year as a group of investors from Zealand bought the assets from Skako. This meant that the manufacturing of the products was to be moved from Odense along with 15 employees. Denka launched production in Holbæk in Autumn and first products were ready in December.

Denka says that its capital resources haven’t been sufficient and the failure to obtain CE approval under European machinery directive has led to only a handful of sales being made further pressing liquidity. Therefore its Board has decided to file a bankruptcy petition.