Kem One files for bankruptcy

According to a report from Reuters, vinyl chemicals maker Kem One, spun off from French chemicals firm Arkema last year, has applied for bankruptcy proceedings in a French commercial court. However, Kem One owner Gary Klesch said the management team is determined to keep the business afloat with help from Arkema, chief supplier Total and the French government. Klesch Group said it had confidence in Arkema's commitment to help find sustainable solutions for Kem One's activities. A court-appointed administrator will oversee Kem One's operations as part of the initial six-month procedure.

The troubles of Kem One are because of the continuing economic crisis in France and also due to the deal between Arkema and Klesch, a deal that went sour after Klesch accused Arkema of supplying "false information" and filed a lawsuit against the chemical company to claim damages.

In retaliation, Arkema has said that Klesch went back on his deal to rustle up a financing plan after the company contributed EUR100 million in cash to sell the business. It also accuses Klesch of aggravating Kem One's losses by spinning off its downstream operations, known as Innovative Vinyls.


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