A-V announced that its subsidiary company OJSC Amtel-Vredestein, the holding company of the group’s Russian business, is no longer able to satisfy its creditors’ demands. A-V’s executive board determined that, due to the financial difficulties A-V faces, it will not be able to provide any additional finance to OJSC AV, which may have “consequences for the going concern status of A-V.”
A-V said that Vredestein Banden will continue to be a concern due to the separate financing arrangements it has in place. But to ensure its long-term sustainability, A-V said it plans to sell the unit, and several potential bidders are conducting due diligence following the submission of preliminary offers.
The company noted that there is no certainty that the sale of VB will be successfully concluded.
Due to a potential conflict of interest in respect to a possible sale of VB, Rob Oudshoorn, K.T. Hettema and Marc Luyten, who are also managers of VB, are resigning from the A-V executive board as of Dec. 15. Those resignations and the prior resignation of I. Ivanov, the A-V Executive Board will have just two members P. Zolotarev as CEO and ‘Director A’, and V. Pesochinsky as ‘Director B’. (Tyres & Accessories/Staffordshire, U.K.)