Amtel-Vredestein N.V. Considering Sale of Assets or Entire Group

Amtel-Vredestein N.V. reports that, since the October 1 termination of the proposed joint venture with Sibur Holding, operations at its Russian production facilities in Kiron and Voronezh have remained suspended due to the group’s shortage of working capital. This suspension, the company adds, does not affect production at Vredestein Banden BV, where production is said to be at normal levels.

A number of options are being explored to reduce the company’s high debt levels, says Amtel-Vredestein. Potential solutions include the sale of some of the company’s assets and/or divisions or the group as a whole. Amtel-Vredestein has now received payment acceleration requests from Sibur-Russian Tyres (SRT) and several of the banks that have extended credits to the Russian operations, and SRT’s claim has been filed with the courts. Amtel-Vredestein states it will be unable to fulfil these requests unless an alternative settlement solution can be agreed. The company is currently in discussions with SRT and the lending institutions and it hopes to negotiate a standstill agreement that will enable the company to pursue value realisation options.