Amtel-Vredestein debts, losses continue to mount ahead of take-over

ERJ staff report (DS)

Enschede, Netherlands -- Amtel-Vredestein N.V. has reported hugely increased losses for the 12 months ended 31 December 2007. Although net sales increased by almost 30 percent, to $994 million (from $768 million in 2006), operating profit (EBITDA) fell by over a quarter, to $59 million, compared with $79 million in 2006. However, interest payments and the re-stating of some assets meant that the net loss rocketed to $243 million, from $5 million a year earlier.

The Company's net debt increased to $800 million as of 31 December 2007, up 17.8 percent from $679 million calculated as of 31 December 2006 on comparable basis. Vredestein Banden operations were not directly impacted by debt problems on the Russian side due to ring fenced structure of its financing and good financial performance.

A-V said, "The Company's going concern status and its prospects for 2008 are fully dependent on the outcome of debt restructuring negotiations currently underway with the corefinancing banks of its Russian operations which is subject to completion of the contemplated merger with Sibur Russian Tires."

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Press release from Amtel-Vredestein