30 October 2009 17:41 [Source: ICIS news]
TORONTO (ICIS news)--The closing of the sale of insolvent Germany-based textile fibre and polyester firm Trevira to two investors has been put off to 31 December, partly due to difficulties caused by the financial crisis, the company’s insolvency administrator said on Friday.
The deal was initially expected to close in early October, but this was later put back to 1 November.
Administrator Werner Schneider said that the financial crisis had caused unexpected delays in completing financial arrangements.
In addition, more time was needed to build up Trevira’s necessary infrastructure following its insolvency filing in June, he said.
However, despite the delays, Schneider said that Trevira's order books were full and the company was in a strong position going forward.
Sales reached €18.8m ($28.1m) in September and €20m in October, with Trevira on track to achieve record sales for 2009, despite its insolvency, he said.
“From the economic standpoint, Trevira is at present on a very stable footing and is financing the ongoing business from income, like a normal company,” he said.
“At the moment and for the foreseeable future, the restructured Trevira…is not only capable of survival, but of becoming very successful,” he added.
Meanwhile, Trevira creditors this week confirmed Schneider in his office as insolvency administrator. He was initially appointed by a court.
Reliance Industries bought Trevira in 2004 from Deutsche Bank. The business used to be part of former German chemicals and pharmaceuticals major Hoechst.
($1 = €0.67)
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