LONDON (Dec. 16, 2008)—Dutch tire maker Vredestein Banden B.V. may once again become an independent company following the impending financial collapse of its Russian affiliate, OJSC Amtel-Vredestein.
Amtel-Vredestein has run out of money and cannot repay its creditors, according to a statement posted on the Web site of London Stock Exchange P.L.C. by Amtel-Vredestein N.V., the Dutch holding company for Amtel and Vredestein. Amtel-Vredestein said it will not provide any more funds to the Russian unit.
Vredestein Banden, the Enschede, Netherlands-based subsidiary of Amtel-Vredestein, continues as a going concern because of separate financing arrangements it has in place. The parent company plans to sell the operation to ensure its long-term viability, and said several bidders are conducting due diligence.
Amtel-Vredestein and Vredestein Banden are in discussions with Vredestein's finance providers, according to the statement. However, a potential conflict of interest may scuttle the sale, according to Amtel-Vredestein.
Vredestein Banden managers Rob Oudshoorn, Kees Hettema and Marc Luyten previously said they would resign from the Amtel-Vredestein executive board on Dec. 15. Oudshoorn has said wants to engineer a management buyout in conjunction with Dutch private equity.