Swets files for bankruptcy

Swets files for bankruptcy

Netherlands-based information services provider Swets is insolvent and has filed for bankruptcy, according to German book trade magazine Börsenblatt.

Swets, based in Lieden, describes itself as "the global market leader in content management services for libraries and publishers." Founded in 1901, it has local offices in 27 countries, including the UK.

The German arm of the parent company, Swets & Zeitlinger Group B V, was granted preliminary bankruptcy protection by an Amsterdam court yesterday (22nd September) according to the Börsenblatt report, and will have its payment obligations to creditors, mainly publishers, frozen. JLM Groenewegen has been appointed as liquidator.

According to the company's annual report for 2013, there were ongoing concerns about the group failing to meet its covenant requirements related to long term financing. It said: "As a consequence of this breach the syndicate and Intermediate Capital Group (both indicated as ‘the lenders’) are entitled to demand immediate repayment. At the moment of signing of the financial statements 2013, the lenders have not accelerated repayment of any of the loans. Since Swets Group is currently unable to fulfil such a potential demand, there is a material uncertainty regarding the continuity of Swets Group and its subsidiaries."