Dogi, the bankrupt Spanish stretch fibres firm, has posted a EUR25.6m (US$37.7m) loss in the first half of 2009, up from EUR6.6m in the same 2008 period, hurt by restructuring costs and plunging sales.

In a statement, the firm said it had to provision EUR15.7m to put its German subsidiary Penn Elastic under bankruptcy protecion.

Meanwhile, sales continue to slide on the back of Spain´s deep recesion and lower demand from tough global markets.

Dogi said it hopes to exit bankruptcy in early 2010 after making arrangements to pay creditors in installments. Under the plan, the firm will pay 20% of its debt in one year and 80% in seven.

The company would not provide more details or return phone calls.

In recent announcements to emerge from the doldrums, Dogi said it was studying selling parts of its European and Asian factories to raise cash and dismiss some 850 workers.

The firm, which has been losing money for five years despite unmet promises that it would turn a profit, has wholly owned factories in Spain, Germany and China.

Under a restructuring plan announced in June, Dogi said it hopes to close 2009 with EUR12m in losses and cut debt by 50%.