AgfaPhoto North America Unaffected by Parent Company's Insolvency

The North American operating unit of AgfaPhoto says that its financial position and business operations are unaffected by the insolvency filing of its parent company, AgfaPhoto GmbH in Germany. AgfaPhoto North America is a separate legal entity from AgfaPhoto GmbH.

The AgfaPhoto organizations in the US, Canada, and Mexico are solvent and have no plans for bankruptcy, says Bing Liem, president and CEO of AgfaPhoto North America. All other AgfaPhoto sales organizations worldwide are also solvent, he says.

“We are proceeding in business-as-usual mode with no interruption in the delivery of products and services to our steadily growing customer base,” says Liem. 'We will not reduce our commercial activities as a result of our parent company's change in status.” AgfaPhoto USA is on track to achieve revenue growth of 20 percent versus last year, he says.

AgfaPhoto GmbH filed for insolvency in late May. To ensure continuity of its business operations during restructuring, it has secured interim financial support from the Agfa-Gevaert Group, its former parent company. Agfa-Gevaert sold its consumer imaging business to a group of investors in a management buyout in November 2004. Agfa-Gevaert provides AgfaPhoto group companies with distribution, order fulfillment, after sales and other services until the end of 2005. {AgfaPhoto: www.agfaphoto.com)