Textile chems producer DyStar files for insolvency in Germany

29 September 2009 15:30  [Source: ICIS news]

TORONTO (ICIS news)--International textile chemicals producer DyStar has filed for insolvency with a court in Germany, according to official documents on Tuesday.

DyStar is one of the world’s largest textile chemicals producers, along with firms such as Huntsman and Clariant.

The court at DyStar’s headquarters in Frankfurt said it received on Monday insolvency filings for DyStar Holdings GmbH, DyStar Textilfarben GmbH and DyStar Textilfarben GmbH & Co. Deutschland KG

The court appointed temporary insolvency administrators and all transactions affecting DyStar’s assets were subject to approval by these administrators, it said.

Media officials at DyStar and at DyStar’s owner, US equity firm Platinum, were not immediately available for comment.

The insolvency filing comes after reports in the German press last week that the company may be broken up and sold amid tough market conditions in the texitle chemicals industry.

DyStar was formed in 1995 out of the textile dyes businesses of Bayer and former German chemicals major Hoechst. In 2000, BASF integrated its dyes business into DyStar. Platinum bough it in 2004.

As recently as May, DyStar had told ICIS news that cost cutting measures, including 300 job cuts at production sites in Germany, were beginning to take effect.

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By: Stefan Baumgarten
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