German MT-Energie secures financing

Nov 11, 2013 - German biogas plant maker MT-Energie said on Friday its creditors have agreed to provide it with funds as its restructuring is starting to pay off.

The company decided to implement a cost-cutting programme in September after its operating loss widened to EUR 16.1 million (USD 21.5m) in the first half of 2013 from EUR 11.6 million in the previous-year period. MT-Energie has reduced the number of its employees as well as the members of its management board and optimised the management of its divisions abroad in order to increase the company's efficiency.

In addition, MT-Energie's main shareholder, Christoph Martens, will further prop up the firm's finances by an equity increase, the company said.

According to the company, revenue from its service business is already 10% above the expected range for the period until end October, standing at EUR 16.5 million and will most likely reach the 2014 target of EUR 20 million by the end of the year. MT-Energie's order backlog is also 15% above expectations at with EUR 104.3 million.

(EUR 1.0 = USD 1.336)

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