A unit of the German-based DyStar group said it will continue worldwide operations despite an anticipated institution of insolvency proceedings next week, saving 70 jobs in Frankfurt.

DyStar Textilfarben GmbH said it will continue the global supply of dyes, additives and services for the textile and leather processing industries, for the time being.

"This allows us to keep on the around 70 permanent employees of DyStar Textilfarben GmbH in Frankfurt. Maintaining the production and sales activities of our still solvent foreign subsidiaries also means that over 2,000 employees there will for now keep their jobs," said insolvency administrator Miguel Grosser from the law firm Jaffé Rechtsanwälte Insolvenzverwalter.

The Frankfurt-based supplier filed for insolvency of its operations in Germany in September.

"We are still in negotiations both to find a general solution for the German DyStar operations that filed for insolvency on 28 September 2009 and to work out individual solutions. We want to be clear as early as we can about which continuation concepts, if any, are feasible," Grosser added in a meeting this week.

Once the insolvency proceedings have commenced as expected on 1 December 2009, DyStar Textilfarben GmbH will have to generate the wages and salaries of its employees on its own again, a company statement detailed.

The entitlement of employees to payment from the insolvency fund ends after November, but Grosser said the company has sufficient liquidity for the moment to continue paying the wages and salaries on time.

In the DyStar group, DyStar Textilfarben GmbH is responsible for the purchasing, administration and global distribution of products.

The four German production facilities in Leverkusen, Brunsbüttel, Geretsried and Ludwigshafen are combined in its sister company DyStarTextilfarben GmbH & Co. Deutschland KG, which filed for insolvency at the same time.

The Frankfurt District Court appointed Dr Stephan Laubereau from Pluta Rechtsanwalts GmbH as the preliminary insolvency administrator for these companies.