Home / Knowledge / News / Textiles / DyStar-Kiri deal may save 2000 jobs, Creditor Committees
DyStar-Kiri deal may save 2000 jobs, Creditor Committees
12
Dec '09
Operations at DyStar Textilfarben GmbH and the production at three German sites are set to continue after the company found an investor in BSE-listed Indian manufacturer and supplier Kiri Dyes & Chemicals Ltd. (KDCL). “We have found an investor willing to buy the operations and the sites in Frankfurt/Main, Leverkusen, Ludwigshafen and Brunsbüttel. This means that up to 800 jobs in Germany and some 2,000 worldwide may be saved,“ insolvency administrator Miguel Grosser from the law firm JAFFÉ Rechtsanwälte Insolvenzverwalter and Dr. Stephan Laubereau from PLUTA Rechtsanwalts GmbH announced.

Under the purchase agreement signed recently, KDCL will take over the operations of the DyStar Group and its German sites in Frankfurt/Main, Leverkusen, Ludwigshafen and Brunsbüttel, along with 36 international subsidiaries. The Geretsried site is not included in the deal. “The concept presented by KDCL may make it possible to preserve the DyStar Group as a going concern,“ Grosser and Laubereau stressed.

The creditor committees have already agreed to the deal, which is still subject to the availability of financing, the necessary approvals by the Federal Cartel Office, and other conditions (consent of the banking consortium). KDCL has undertaken to secure the financing of the takeover of operations of the DyStar Group from the New Year. If all requirements are met as planned, the purchase agreement may be executed by January 2010.

This would set the stage for resuming productions at the Brunsbüttel and Leverkusen sites. The indigo production in Ludwigshafen will carry on without interruptions. “We will continue working on a solution for the Geretsried site, but we are still looking for potential investors here,“ Grosser and Laubereau said.

After opening insolvency proceedings on 1 December, DyStar Textilfarben GmbH continued full operations, the global supply of dyes, additives and services for the textile and leather processing industries, under the responsibility of insolvency administrator Miguel Grosser.

“With the help of KDCL we are in a position to offer staff at the sites in Frankfurt/Main, Leverkusen, Ludwigshafen and Brunsbüttel a transfer company for employment and qualification. If the deal with KDCL is completed as planned, the latter will likely be able to reemploy the majority of those released from work as early as mid-January, “ Dr. Stephan Laubereau confirmed. “The exact details of the deal are still being negotiated. “

After an intensive worldwide search for investors, three potential buyers remained in the final stages of negotiations. In the end, the concept of Ahmedabad-based Kiri Dyes & Chemicals Ltd. proved to be the most profitable. “Our negotiations over the last few days progressed quite quickly. This was due solely to excellent preparation and the professional attitude of all involved,” Grosser and Laubereau affirmed.

DyStar Textilfarben GmbH


Must ReadView All

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X