Cinterion Faces Failure? - rumors circulate
Earlier this week, Cinterion Wireless Modules, on behalf of its financing ownership, published an announcement on its website that it would file for reorganization.
The message includes the following....
.... Cinterion Wireless Modules Holding GmbH is reorganizing its financial structure. Before discussing this restructuring, we would like to illustrate the structure of Cinterion in a simplified form:
Cinterion Wireless Modules Holding GmbH holds 100% of the shares in Cinterion Wireless Modules GmbH (CWM GmbH). The holding company deals with the financing structure, whereas all business activities run under Cinterion Wireless Modules GmbH.
The operational business of Cinterion Wireless Modules GmbH, with which your business relationship exists, is not affected by this and will continue without any restrictions.... The operational business of Cinterion will remain profitable. This has also been confirmed by a recent review via PricewaterhouseCoopers.
....German insolvency law provides the option of reorganizing the financial structure of a company without compromising the ongoing business operations of subsidiary companies. That also applies in our case. There will be no layoffs, no branch closures, liquidations or anything similar in this respect.
We think this is a set back for the module maker that spun out of Siemens M2M inititatives several years ago, but that its proactive stance on mHealth initiatives will pay off in the long run. Please leave your comments.