The West German electrical goods giant AEG-Telefunken announced today it would go into receivership. Bankers say this is the largest corporate failure in West German history.
In a letter to employees, the company said it would seek a settlement with creditors, but would do so in a way that would allow it to avoid complete bankruptcy - which would have forced the company to close all of its factories.
Instead, the company says it is asking for a receiver to take over control and sell enough of the company's assets to pay creditors at least in part.
AEG-Telefunken employs nearly 100,000 people in West Germany and more than 120,000 worldwide.