Schur’s Receivables on Sale After Fraud Claims Hit Balance Sheet

Traders at Deutsche Bank AG are holding an auction this week for 25 million euros ($26 million) of the supply-chain finance arrangements entered into by Schur Flexibles GmBH to pay its suppliers, according to people familiar with the matter.

The Austrian packaging company has about 80 million euros of such arrangements in place, said one of the people, who isn’t authorized to talk about it and asked not to be identified. It’s another form of debt weighing on the company’s already stressed balance sheet.

Supply-chain financing is a method by which companies can get cash from banks and funds to ...