LG Philips units files for bankruptcy
27 January 2006, AMSTERDAM — Dutch and a German subsidiary of LG Philips Displays filed for bankruptcy protection on Friday, the maker of cathode ray tubes said on Friday.
27 January 2006
AMSTERDAM — Dutch and a German subsidiary of LG Philips Displays filed for bankruptcy protection on Friday, the maker of cathode ray tubes said on Friday.
The company said 350 people employed at the plant in Eindhoven and 400 based in Germany may lose their jobs, a spokesperson said.
LG Philips Displays is a joint venture between electronics giant Philips and LG Electronics of South Korea.
A statement issued on Friday said the holding was no longer in a position to keep funding the subsidiaries due to the business's worsening financial position.
The company makes cathode ray tubes for televisions and computer monitors. But the demand has been on the decline due to the increased popularity of flat panel technology.
"Ever since the market went into decline in 2005, we've been trying hard to produce more efficiently, to find financing, but nothing can keep up with this decline," spokesman Carlo Van Pelt told Associated Press.
Philips took a EUR 458 million charge in the fourth quarter to write off the entire value of its stake in the displays unit.
LG Philips will continue its other operations around the globe, Van Pelt said. These employ 15,000 people.
[Copyright Expatica News + ANP 2006]
Subject: Dutch news