Insolvent DyStar resumes production at German plant

15 October 2009 14:40  [Source: ICIS news]

TORONTO (ICIS news)--Insolvent DyStar has restarted its plant in Geretsried, Bavaria, and is working to restart its other German plants soon, administrators of the international textile and leather chemicals producer said on Thursday.

Also, DyStar was able to continue supplying customers from inventory, court-appointed insolvency administrators Miguel Grosser and Stephan Laubereau said.

DyStar had to shut down production at sites in Leverkusen, Brunsbuttel, Geretsried and Ludwigshafen - affecting 1,300 workers - after energy and utility firms cut supplies because of unpaid bills in the wake of the company’s insolvency filing late last month.

“We have made great progress in our talks with banks and secured creditors. This allows us for the time being to continue our operations at DyStar Textilfarben GmbH and resume delivery of our products,” said Grosser.

In the meantime, DyStar management and the administrators have also begun initial talks with potential investors to buy the company, Grosser said.

“Further talks are due to be held over the next few days. It is still too early, though, to assess the situation,” he added.

DyStar Textilfarben GmbH, its sister company DyStar Textilfarben GmbH & Co. Deutschland KG, and the non-operative DyStar Holdings GmbH were forced to file for insolvency on 28 September 2009.

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

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. US investment firm Platinum Equity bought it in 2004.

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By: Stefan Baumgarten
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