Merckle family empire gets bridge loan

Merckle family empire gets bridge loan
08 January 2009

The Merckle family of Germany said Wednesday that creditors agreed to provide a bridge loan for its VEM Vermögensverwaltung holding company, paving the way for the breakup of the family’s business empire.

Ratiopharm, a generic drug maker, will be sold and Ludwig Merckle will step down as director of VEM as part of an agreement with banks, VEM said.

"We’re happy to have found a solution," Merckle said in a statement. "The operating business at Ratiopharm, as well as other companies in which VEM holds a stake, is fundamentally healthy."

The rescue plan was announced two days after Adolf Merckle, head of the family, committed suicide by stepping in front of a train. Merckle, whose estimated $9.2 billion fortune made him one of the world’s richest people, was "broken" as his business empire crumbled under the growing burden of debt, his family said Tuesday.
Published under Cement News