Indian investor found for DyStar10 December 2009
Operations at DyStar Textilfarben GmbH and the production at four 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 on December 10.However, it appears that KDCL will not be buying the Geretsried site (formerly Dr Boehme) which is where most of the company’s leather chemicals are produced.
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 Brunsbüttel, Leverkusen, Frankfurt and Ludwigshafen a transfer company for employment and qualification. If the deal with KDCL is completed as planned, the latter will likely be able to re-employ the majority of those released from work as early as mid-January’, 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 confirmed.