DOMO Chemicals files for protection against creditors in France

The Belgian chemical group DOMO Chemicals is also filing for protection against creditors in France, following the same filing for its German operations at the end of December.

The chemical company, owned by the De Clerck family and headquartered in Ghent, filed a lawsuit in Lyon on Thursday on behalf of its French subsidiary, Polytechnyl. This is a ‘procédure de redressement judiciaire’, similar to a judicial reorganization in Belgium. The procedure is intended to ensure the continuity of business operations.

The company said in a statement that the lawsuit is prompted by problems in Germany. DOMO Chemicals filed for protection there at the end of December. The company can no longer meet its financial obligations there, after the shareholders, banks, and creditors failed to reach an agreement on additional financing. ‘This has direct consequences for Polytechnyl’, the explanation reads.

The company's daily operations in France will continue as normal, Polytechnyl assures. DOMO Chemicals is a polymer producer. In France, it has two sites: in Saint-Fons, south of Lyon, and in Valence.

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