German press manufacturer Koenig & Bauer is applying for a government loan of up to €120 million ($137 million) to supplement existing credit lines, the company announced.

No dividend distributions will take place during the term of the loan.

The loan is in tandem with the company’s Performance 2024 efficiency plan.

“In parallel to the corona crisis management, we are working intensively on the Performance 2024 efficiency program, evaluating various scenarios. In addition, improvements in working capital and cash flow are at the top of the agenda alongside the strategic focus on packaging printing and digital services,” said CEO Claus Bolza-Schunemann.

The company is requesting the loan through KFW, Germany’s state-owned development bank.

Short-time working (a German unemployment program that includes reduced hours and pay) has been in place at different Koenig & Bauer locations since April 1. Under the current uncertain conditions, the impact on revenue and earnings in the 2020 financial year cannot yet be determined, the company says.