Shares in German TV maker Loewe have plunged after a Court approved a plan for a self-administered insolvency program which is critical to the company having a good last quarter prior to cash running out.
In Australia distribution of the Loewe TV range recently switched from Audio Products Australia to Melbourne based Qualifi.
Overnight shares in Loewe plunged as much as 48 percent to 3.20 euros the lowest since the company's July 1999 initial public offering.
Bloomberg said that the manufacturer was founded in Berlin in 1923 by Siegmund and David Ludwig Loewe, and presented the world's first electronic TV transmission at the Berlin Radio Show eight years later. In recent years, Kronach-based Loewe has struggled to win buyers for its home entertainment systems as the European sovereign-debt crisis eroded consumer demand. The company filed for protection from lenders on July 16.
Loewe "will remain fully operational" as it reorganizes, the company said today in a statement to the stock exchange. "The restructuring process initiated by the executive board will also continue as before, focusing entirely on concluding the meetings with investors."