The show floor here at PMA is humming with the news that Leica, the venerable German camera company, are in deep financial straits following a 50% drop in share price and the subsequent termination of credit by their banks. This rumour has now been officially confirmed by the company in the following brief statement on their website:

Following the ad hoc announcement of Leica Camera AG, Solms, of February 17, 2005, stating that the Company expects a loss of half of its registered share capital in March 2005, the banks have partially terminated their credit lines. The remaining lines still cover the current liquidity requirements. The Company’s Board of Management has entered into negotiations with the banks on a solution that will carry the Company until the time of its Extraordinary General Meeting on May 31, 2005, at which capital measures are to be proposed to the shareholders.

What this means for Leica is still unclear. Can they survive in their current guise, or will the famous manufacturer find a buyer and continue to live on another day? Even if they do survive, will digital products like the long-delayed LEICA DIGITAL-MODUL-R ever make it out of the factory? We should know the answer by May 31st.