03 April 2013 14:19 [Source: ICIS news]
LONDON (ICIS)--The first hearing to discuss the future of French vinyls producer KEM ONE since the company’s upstream business was placed into receivership last week is planned for 9 April, a spokesperson for former owner Arkema confirmed on Wednesday.
The hearing, which is understood to include Arkema, is being convened by Lyon's commercial court, to discuss options for KEM ONE subsidiary KEM ONE SAS, the company’s upstream vinyls production business.
“The next meeting has been decided by the Lyon commercial court, which has planned a first hearing on 9 April regarding KEM ONE's future,” an Arkema spokesperson told ICIS.
Since KEM ONE SAS was officially placed into receivership last week, KEM ONE has stated that Arkema and Total, Arkema’s former parent and a key supplier to KEM ONE, have a role to play in the recovery of the business.
“KEM ONE management team is confident in the commitment of both its former shareholder Arkema... and its main supplier Total to find sustainable solutions for its activities,” the company said, when it first announced that KEM ONE SAS had been placed in receivership last week.
Arkema has attributed the difficulties of the upstream business to a decision by the current owner, the Klesch Group, to split the business into separate upstream and downstream units, without setting in place necessary funding and guarantee structures. This opinion was echoed by French union CFDT.
The company’s downstream business, KEM ONE Innovative Vinyls, is performing satisfactorily, according to KEM ONE and Klesch.
KEM ONE SAS was placed into receivership several weeks after Klesch announced that it was seeking €310m ($397.4m) in compensation from Arkema for alleged “misrepresentations” in the divestment of KEM ONE last July, a position Arkema disputes.
($1 = €0.78)
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