ERJ staff report (DS)
Moscow -- Amtel-Vredestein Group is exploring the sale of certain of the company's assets and/or divisions or the Group as a whole. Meanwhile, it has said production of tyres at its Kirov and Voronezh manufacturing facilities is still suspended, due to lack of money to buy raw materials. Production at the financially-protected Vredestein unit continues as normal.
To add to Amtel-Vredestein's difficulties, it has received payment demands from Sibur Russian Tyres, and SRT has filed its claim with the courts. Furthermore, several of the banks lending to its Russian operations under its existing facilities have sought repayment of their loans to A-V. Amtel-Vredestein has admitted that it cannot fulfil these requests. The Company is currently in discussions with SRT and the lenders and hopes to negotiate a standstill agreement which will enable it, "to pursue value realisation options."
Amtel-Vredestein said it expects to make a further announcement in due course.
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Press release from Amtel-Vredestein