Quelle gets €50 million in emergency loans
AFP/DDP/The Local · 30 Jun 2009, 08:02
Published: 30 Jun 2009 08:02 GMT+02:00
The states of Bavaria and Saxony, where Quelle conducts business, as well as banks and government officials, worked with the ailing company to secure a loan by December 31, 2009, Bavarian Finance Minister Georg Fahrenschon said after the meeting.
The emergency aid deal for the company, which is 80 years old and employs some 8,000 workers in central and Eastern Europe, is still pending approval by the EU Commission on Tuesday, he added.
Saxony Economy Minister Thomas Jurk explained that the federal government had agreed to contribute €25 million, Bavaria would pony up €20.5 million, and Saxony a smaller sum of €4.5 million.
German Economy Minister Karl-Theodor zu Guttenberg told broadcaster ZDF on Tuesday morning that the loans will give Quelle a fair chance to recover.
“We have to deal with taxpayer money responsibly,” he said.
Insolvency administrator Klaus Hubert Görg told the media he was relieved that a deal had been reached, but warned that the situation was still tenuous.
“We must not think that it’s a sure-fire solution,” he said.
Quelle, owned by insolvent tourism and retail group Arcandor, needs the loan to finance their new winter catalogue and ease debts.
The two companies practice a form of treasury called cash pooling, and much of Quelle’s liquidity had been filched by Arcandor recently.