Majorica rescue package should end crisis

A rescue package is being put together to save the hard-hit Manacor pearls firm, Majorica, which this week came close to filing for bankruptcy. Next week a series of meetings have been arranged with local banks and they appear willing to grant the company, one of the biggest employers in Manacor, a credit lifeline. Unions believe that this will allow Majorica economic breathing space to rebuild, and perhaps return to profitability. Employees, who at one stage had feared for their jobs, are relatively upbeat and have praised the local government for their support. As part of the rescue package, the trade name, Majorica, cannot be sold for at least 10 years and jobs must be maintained. The pearls firm suffered badly following the September 11 attacks as their key export markets are the United States and Japan. The firm went into meltdown and at one stage it did appear that Majorica might not survive. Job losses were announced and hundreds of people marched through the streets of Manacor calling for action. Two years ago Majorica was sold to outside investors. However, careful behind the scenes negotiations involving the local government, the owners and the unions, appear to have proved successful. No-one is willing to give more details about the rescue package but it should mean that the company will be safe along with the jobs of hundreds of workers. Manacor will give a sigh of relief.