Background: While the group's service business is continually growing, from mid-2012 on there has been a drastic slump in the new machine business of E.C.H. Will reflecting the global stagnation in the graphic paper market and the economic slow-down in Asia. As the world market leader of passport binding and paper converting machines, Kugler-Womako is financially healthy and profitable and enjoys a positive business trend.

Due to a pooled financing model, Kugler-Womako is unwillingly forced to file for protection under the shield. This is not the case for Papersystems’ third subsidiary – the US based Pemco Inc. in Sheboygan/WI: this company is profitable, financially independent and therefore not affected by these proceedings.

The business of all companies will remain fully operational. Customers and suppliers have been informed. Payment of wages and salaries during the proceedings are ensured.

In the coming months, a new concept with the objective to restructure the company will be implemented. This concept has already been pre-agreed with the staff, the works' council and trade union. Alexander Wassermann, CEO of E.C.H. Will holding company Papersystems, explains: "Our objective is to use the benefits of the protective shield proceedings and the support of our shareholders to emerge from this situation as quickly and as successfully as possible. We are convinced that Papersystems and its affiliates E.C.H. Will and Kugler-Womako can be restructured in a very short period for a solid, long-term future.“