SAINT MARCEL, France -- Venture Holding Trust of Fraser, Michigan, the US parent company of insolvent Peguform France, has won court approval for its financial rescue plan for the French supplier.
As a result Venture is now able to resist a bid for Peguform France made by Swedish supplier Plastal.
Peguform must now come up with E33 million for 2003 under terms of the rescue plan.
The US company wants to contribute E10 million and E6 million will come from Peguform's Czech Republic unit.
If necessary, the remaining E17 million would come from by Peguform operations in South Africa and Australia.
André Chometon, chief executive of Peguform France, wants to use a time limit of two months that had been granted by the court to obtain further bank loans and to convince the suppliers of the strategy.
Within five years Chometon wants to pay off 80 percent of the E45 million in debt as part of the rescue plan. In addition, the French operation would become part of Peguform's Czech Republic unit.
A rescue plan for Peguform in Germany will be presented in early summer.