BS: RIL’s German subsidiary files for insolvency
RIL sources said Trevira saw losses amounting to millions of dollars in 2008, especially after the slump in global demand
Reliance Industries Ltd (RIL), the largest polyester fibre and yarn maker in the world, today said its sick German subsidiary Trevira GmbH has filed for insolvency proceedings with a restructuring plan due to its deep financial crisis.
Trevira has filed an application with the Augsburg Court in the State of Bavaria, Germany for insolvency, RIL informed the stock exchanges today.
RIL had elevated Elke Bauerle, chief restructuring officer for Trevira, as its managing director on May 25. She had joined Trevira from Schultze & Braun, a leading law-firm specialised in restructuring, replacing Hemant Sharma, who was heading the company since RIL’s acquisition in September 2004.
The ¤323-million (approximately Rs 2,170 crore) turnover Trevira, a leading producer of high-end specialised polyester yarn and fibre and a well-known brand in Europe, suffered heavy losses last year due to the slowdown in Europe, especially in the automobile sector.
Trevira supplies 27 per cent of its 120,000-tonne-per-annum production of fibres and filament yarn to the automotive sector and 30 per cent to home textile manufacturers. Rising raw material costs and high spends on energy also affected the performance of the company, said sources.
It looks like some of the overseas acquisitions, like Corus, Jaguar/Land Rover, etc. are not in the best of shape.
