Vredestein Banden to be sold - A-V breakup imminent

Moscow -- Amtel-Vredestein has announced the 'binding sale' of its Vredestein Banden unit. The company said in an announcement that it, "has received a binding offer from an industry player in respect of the

purchase of the entire issued share capital of VBBV (the

“Transaction”). It is proposed that the purchaser also acquires certain

indebtedness currently owed by VBBV to the Company and certain

intellectual property rights related to VBBV currently used and/or

registered in the name of the Company."

After this announcement, A-V said it has receieved court approval to suspend payments on all debts excluding those related to Vredestein Banden. The agreement prevents creditors making claims on A-V's assets for a period of two months. The company has appointed an official receiver