02 October 2009 15:59 [Source: ICIS news]
TORONTO (ICIS news)--Insolvent textile chemicals major DyStar has been forced to halt production at its plants in Germany due to its inability to pay wages and bills, a spokeswoman said on Friday.
The company filed for insolvency earlier this week and a court in ?xml:namespace>
DyStar employs a staff of 1,300 at five production sites in
However, DyStar management and the administrators were working “under high pressure” to secure financing to quickly resume production, said Gabriele Wunnenberg, a spokeswoman for one of the administrators,.
In addition, consultants KPMG have been hired to find an investor to buy DyStar, Wunnenberg said.
The affected workers were being paid by the employment office in the form of “insolvency pay”, she said.
She said she could not comment on whether DyStar’s production outside
Media officials for DyStar owner Platinum Equity could not be immediately reached for comment. Frankfurt-based DyStar referred media inquiries to the administrators.
It 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 bought it in 2004.
Another former Hoechst affiliate, textile-fibres producer Trevira, also went insolvent this year.
However, Trevira managed to maintain production during insolvency administration. It has since been sold to two chemical industry executives.
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