Is this the "whole" story?
Friday March 9, 7:39 am Eastern Time
Swiss trading house Andre has creditor protection
(UPDATE: Adds company quotes paras 4-5, more chief executive's remarks)
By Stephanie Nebehay
LAUSANNE, Switzerland, March 9 (Reuters) - Swiss-based Andre & Cie, one of the world's top five commodities trading groups, said on Friday it had been forced to seek protection from creditors to try to save the 123-year-old firm.
Family-owned Andre said it had failed to convince its 43 banks, among them Switzerland's largest banking group UBS , to agree to a standstill agreement.
It had presented a new business plan after a major restructuring in January in which 60 percent of the group's jobs had been slashed.
``Without normal access to its credit lines, the activity of the group had to be dramatically decreased. After eight weeks of negotiations and waiting, the company is at present paralysed and its revenues from commercial activities are severely compromised,'' Andre said in a statement.
``Under these circumstances, the board of directors and the management had no choice but to file for court protection in compliance with all legal requirements,'' the statement said.
Chief executive Friedrich Sauerlaender told reporters that Andre had debts of around $400 million while its equity was only 19 million Swiss francs ($11.50 million) at the end of January.
Business has dwindled.
``It is extremely difficult for traders and administrative staff to work in a trading room where the telephone does not ring anymore,'' Sauerlaender said at only the second news conference in the firm's history. The first was held in January to announce the restructuring.
He added that the group was making net losses of six million francs per month.
In Lausanne, where the commercial operations for Europe and Africa will be closed, more than 100 jobs are set to go. Andre currently employs 180 people in Lausanne.
Sauerlaender said that in six months this figure would be reduced to 80 and possibly cut to 50 by the end of the year.
He said staff affected by this latest round of job cuts would receive the same financial support as the employees that had to be made redundant over the past months.
A group of family shareholders was setting up a fund with several tens of millions of francs towards helping out the former staff as they face hardship while trying to find new jobs. Current salary payments were secured, he said.
The company was forced to file for court protection, which was awarded by a Lausanne commercial court on Thursday, and an administrator has been appointed.
biz.yahoo.com |
