04 June 2009 20:16 [Source: ICIS news]
TORONTO (ICIS news)--Trevira parent Reliance Industries has committed to taking on the €55m ($77m) bank debt of its insolvent German polyester businesses, Trevira managing director Elke Bauerle said on Thursday.
India's Reliance did not plan to be “engaged with” Trevira any longer, Bauerle said, adding that the company would eventually be sold to a suitable investor who could offer a long-term future.
With Reliance’s commitment to take on the debt, Trevira was entering insolvency proceedings without bank debt, a factor that increased the chances of turning the company around, Bauerle said.
Bauerle, a lawyer and insolvency expert, was appointed managing director in May following the departure of the company’s CEO and its previous managing director.
She said that despite the insolvency proceedings, Trevira would continue to operate normally and all customer orders would be filled.
Wages and salaries were secure for the coming three months and employment contracts remained in effect for the time being.
However, in view of the very difficult economic situation, cuts to employment levels were inevitable, she said.
Trevira employs 1,800 workers at sites in ?xml:namespace>
Reliance Industries bought the business in 2004 from Deutsche Bank. Trevira was previously part of Hoechst, the former German chemicals and pharmaceuticals major that later merged with French company Rhone-Poulenc to form Aventis.
($1 = €0.71)
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