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Polish 3D printing manufacturer Zortrax has applied for approval of a restructuring agreement to stabilize its financial position.
Zortrax’s largest contractors, involved in the restructuring process, have opted to support the proposed plan. This is a key step in addressing outstanding liabilities and securing future growth. The plan includes converting debts owed to major partners into company shares, while fully repaying liabilities below PLN 130,000 (approximately $33.4K) and public law liabilities.
On August 8, 2024, Zortrax filed its application with the District Court in Olsztyn, seeking approval for a partial restructuring arrangement. This application followed a vote on restructuring proposals developed by Paweł Głodek, arrangement supervisor and licensed restructuring advisor at Resist Law Firm in collaboration with the Zortrax management board.
“A difficult period is behind us, which led us to the moment when it was necessary to take painful, but necessary actions. The restructuring plan prepared with the support of the Resist Law Firm allows Zortrax to get out of a difficult situation. I am pleased with the positive reception of the proposal by our contractors. In my opinion, this is an expression of faith in the future of the company and confidence in our ability to go through with implementing the plan. Thank you for your trust and support,” said Mariusz Babula, CEO of Zortrax.
Comprehensive restructuring efforts
The restructuring plan organizes creditors into different groups based on the size of their claims.
For Group 1, which includes the public-law creditor ZUS, a social insurance institution, the proposal outlines full repayment of liabilities over 24 installments. ZUS has already endorsed this part of the agreement. Group 2 includes contractors with claims up to PLN 130,000, who will receive full repayment in 36 installments. Group 3 consists of contractors with claims exceeding PLN 130,000, totaling around PLN 6.6 million ($1.69M), which will be converted into Zortrax shares priced at PLN 0.10 ($0.03) per share.
Zortrax is continuing its extensive restructuring efforts, targeting both revenue growth and cost efficiency. The company’s plan includes outsourcing certain processes, reducing real estate rental costs, restructuring its financing, and increasing direct sales. These measures are aimed at boosting turnover and maximizing profits to meet debt repayment obligations under the restructuring agreement.
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Some of these changes have already been put into action, with full results expected by the second half of 2024. So far, Zortrax has seen significant cost reductions, including an 80% decrease in real estate rental expenses, a 70% reduction in wage and social security costs, and a 50% reduction in external service expenses. Despite these cuts, the company remains committed to its core business, focusing on software and hardware development for 3D printing and providing technical support to customers.
Zortrax’s 3D printing expertise
Zortrax’s restructuring comes at a challenging time for the global 3D printing industry. According to a report by CONTEXT referenced by the company, the market faced difficulties in 2023 due to inflation and rising interest rates, particularly affecting expensive industrial-grade printers. However, desktop-class 3D printers, such as those produced by Zortrax, have seen increased demand.
Last year, Japanese automotive multinational company Toyota leveraged Zortrax 3D printing technology to enhance its vehicle assembly processes at its Polish facilities. Transitioning from CNC machining to Zortrax M300 Plus systems, the company now produces on-demand jigs, fixtures, and spare parts, cutting costs and lead times.
This change has streamlined production, particularly in engine mounting tasks. The reliable and easy-to-maintain Zortrax 3D printers are key in maintaining assembly line efficiency, ensuring minimal disruptions, and improving overall manufacturing performance.
Elsewhere, Zortrax 3D printed parts for Poland’s first electric motorbike brand, Falectra, helping it create a fully functional prototype using its Layer Plastic Deposition (LPD) 3D printers 3D printers and Z-ULTRAT filament. This 3D printing method significantly reduced prototyping costs, cutting them to one-seventh of traditional expenses.
Falectra’s eco-friendly motorbike, designed for easy riding and repair, featured a zero-emission engine and could travel up to 70 km on a single charge. The first ten motorbikes underwent road tests, says the company.
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Featured image shows M300 Dual with a model inside with lighting on. Image via Zortrax.
