DyStar to maintain worldwide operations

Preliminary insolvency administrator Miguel Grosser informs staff

Employees of GmbH and foreign subsidiaries to keep job after institution of insolvency proceedings

Negotiations with potential investors continue

25 November 2009, Frankfurt - Operations at DyStar Textilfarben GmbH will continue even after the anticipated institution of insolvency proceedings next week.

“We are in a position to continue the activities of DyStar Textilfarben GmbH, i.e. the global supply of dyes, additives and services for the textile and leather processing industries, for the time being. This allows us to keep on the around 70 permanent employees of DyStar Textilfarben GmbH in Frankfurt. Maintaining the production and sales activities of our still solvent foreign subsidiaries also means that over 2,000 employees there will for now keep their jobs,“ the preliminary insolvency administrator appointed by the Frankfurt District Court, Miguel Grosser from the law firm Jaffé Rechtsanwälte Insolvenzverwalter, said today at a staff meeting in Frankfurt-Höchst.

Grosser informed staff at DyStar Textilfarben GmbH of the latest progress in the preliminary insolvency proceedings and the search for investors. “We are still in negotiations both to find a general solution for the German DyStar operations that filed for insolvency on 28 September 2009 and to work out individual solutions. We want to be clear as early as we can about which continuation concepts, if any, are feasible, “Grosser summarised.

Once the insolvency proceedings have commenced as expected on 1 December 2009, DyStar Textilfarben GmbH will have to generate the wages and salaries of its employees on its own again. The entitlement of employees to payment from the insolvency fund ends after November. “We have sufficient liquidity for the moment to continue paying the wages and salaries on time,“ Grosser emphasised.

In the DyStar group, DyStar Textilfarben GmbH is responsible for the purchasing, administration and global distribution of products.  The four German production facilities in Leverkusen, Brunsbüttel, Geretsried and Ludwigshafen are combined in its sister company DyStarTextilfarben GmbH & Co. Deutschland KG, which filed for insolvency at the same time. The Frankfurt District Court appointed Dr. Stephan Laubereau from Pluta Rechtsanwalts GmbH as the preliminary insolvency administrator for these companies.