Austrian car parts maker Eybl declares bankruptcy

Austrian car parts maker Eybl declares bankruptcy Vienna  - Austrian-based car parts supplier Eybl International AG declared bankruptcy Friday and said that the future of its production sites in Central Eastern Europe was still to be determined.

As takeover talks with the Slovenian Prevent Group failed and the company lacks liquidity owing to the crisis in the car industry, Eybl not only filed for receivership but also announced that 600 staff in Austria faced potential layoffs.

Eybl's 4,100 employees make textile and leather interiors for cars at production sites in Austria, Germany, Hungary, Slovakia and Romania.

A task force would determine in the coming days how the plants would be affected, chief executive Otto Zwanzigleitner told Deutsche Presse-Agentur dpa.

"We aim for continuing our business in all branches," he said.

In June, Eybl's debtors agreed to bail out the company that finished its 2007/08 business year ending in March with a net loss of 45.9 million euros (66.3 million dollars).

Eybl has completed its restructuring plan and is not excessively indebted, Zwanzigleitner said. "We are simply lacking cash," he said. (dpa)

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