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Kynast Begins Insolvency Proceedings

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QUAKENBRÜCK, Germany- Today (2 December) the insolvency proceedings at German bicycle manufacturer Kynast begin. On 6 October Kynast applied for a suspension of payments, thereby making the sequester Rudolf Lauscher the company's general manager. Now, as the proceedings begin, the company remains positive about its future. According to Kynast CFO Jochen Petsch, "Production and sales are running at full capacity." Lauscher says that several investors are interested in the company. The goal, he adds, is to keep all four Kynast divisions--bicycle, steel tubing, lawn mower and garden furniture--together. For this, Kynast has to find an investor who is willing to take over the entire business. Before declaring bankruptcy, Kynast had plans to divide the suffering conglomerate into four separate companies. No one knows how long the current insolvency proceedings will take. In the meantime, Kynast continues to produce. This despite the fact that many of the company's 1,050 employees will undoubtedly loose their jobs. Many feel that this number will be as high as 50%, or more. (JB)

by Bike Europe last update:21 Mar 2006

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