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Bankruptcy announcement for security firm, Panaxia

Wednesday, 05 September 2012
Security Group Panaxia has put itself into bankruptcy as the firm failed to get enough money to carry out a rights issue.

"The application comes after a period of intense work when Panaxia's new board and management attempted to strengthen its financial position ," said a press release from the company (in swedish).

Panaxia is a firms which says it offer a range of services within security and logistics, operating Sweden-wide and has offices throughout Sweden.

The company recently decided on a new share issue in light of the heavy losses charged to earnings in the second quarter of 2012. The loss amounted to a quarter of a billion Swedish Krona.

"The issue amount was intended to reach to at least Skr 225 million, but yesterday it became clear to the company's management and board of directors that existing underwriting were not sufficient to meet the cash management requirements. This means that the board and management has decided to determined that the company is insolvent "writes Panaxia in the press release.

Panaxia founder, Thomas Gravius was arrested along with another manager of Panaxia on April 19 this year. Gravius and the company's ex-boss is suspected of aggravated accounting offenses in two companies that the they both operate. Both deny the charges.

According to the prosecutors, the two are accused of being involved in a situation that fact that Skr172 million has not been properly accounted for.

"There is now a temporary halt in operations pending the district court approval and for the appointment of bankruptcy management and trustees, "said Monica Hallin, CEO of the company since July, said.

She expects that to happen in the afternoon, and that the administrator will then runs the business for a possible sale of the company.

Behind bankruptcy is the write-off of Skr200 million the company was forced to carry out according to its interim report for the second quarter, partly as a result of the alleged accounting violations by the two former executives of the company.

Among the services Panaxia offers includes, cash in transit & cash services, logistics & storage management, security & surveillance as well as technique of / and information recycling.
by Scancomark.com.Team

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