PARIS, April 10 French chemicals maker Arkema
will book a first-quarter charge of 125 million euros
($163 million) to reflect its exposure to unprofitable vinyls
business Kem One, which it spun off in July 2012, Arkema said on
A French commercial court opened bankruptcy proceedings for
Kem One in March at the request of its new owner, Klesch Group,
led by American investor Gary Klesch.
A court-appointed administrator is due to oversee Kem One's
operations as part of the initial six-month procedure. Arkema
will contribute 68.7 million euros to Kem One's financing during
the observation period, the company said.
Klesch Group is also suing Arkema for 310 million euros
($403 million) in a dispute over the sale of Kem One.
Klesch said it had discovered significant gaps in the
information presented by Arkema's management before it completed
the acquisition of Kem One, whose products are used in items
ranging from pipes and packaging to paper.
Arkema has rejected what it called "serious and false
allegations", saying it was confident of demonstrating they were
($1 = 0.7658 euros)
(Reporting by Elena Berton; Editing by Tom Pfeiffer)