The French subsidiary of Belgian chemical company Domo Chemicals, Polytechnyl, has initiated court-administered insolvency proceedings in Lyon due to financial difficulties, meaning its unable to pay its debts.
The company stated that the decision follows recent events affecting Domo Chemicals’ operations in Germany. Negotiations between shareholders, banks, and creditors to establish a comprehensive funding plan had failed, prompting Domo Chemicals’ three German entities to begin pre-insolvency proceedings. This directly impacted Polytechnyl’s financial stability.
Polytechnyl aims to use insolvency proceedings to benefit from legal protection while working with court-appointed administrators to secure a plan ensuring continued operations.
Daily activities are ongoing at its French sites, and the company is striving to minimise any disruptions to customer deliveries. Stéphane Guélat, General Manager of Polytechnyl, emphasised their focus on operational safety and customer service.
In the coming weeks, the judicial administrators will closely collaborate with the company’s management and partners to assess financial conditions and explore restructuring options.
Domo Chemicals, headquartered in Ghent, specialises in polymer production and is part of Dovesco, owned by the entrepreneurial De Clerck family. In France, it operates facilities in Saint-Fons, near Lyon, and Valence.
