UPDATE 1-Arcandor's Quelle unit gets debt reprieve
* Administrator strikes deal with banks for Quelle
* Talks for state loan guarantees continue
(Adds background and detail)
FRANKFURT, June 19 (Reuters) - The insolvency administrator of German retailer Arcandor (AROG.DE: Quote, Profile, Research) has reached an agreement with banks to secure for now the future of Arcandor's stricken mail-order business Quelle, the official said on Friday.
Klaus Hubert Goerg said he struck a memorandum of understanding with banks which meant Quelle would be able to continue to operate and start printing its autumn/winter catalogue -- crucial for its business.
Publication of the catalogue was at risk as Quelle ran out of money to pay for the printing after its factoring bank cut the company off last week.
Goerg has been in talks with the German government and the state of Bavaria for loan guarantees of about 50 million euros ($69.61 million) and Bavaria has already agreed to take part.
Quelle is based in the Bavarian town of Fuerth. Continued...
India Investment Summit 2009
Top executives and bankers discuss their own plans and the broader opportunities and challenges for India. Full Coverage
GLOBAL RECOVERY
Global economy in holding pattern - IMF
The global economy is in a holding pattern and vulnerable to more upheaval, the head of the IMF said, adding a lasting recovery will depend on policymakers taking the proper steps in the coming months. Full Article
India
US
UK
