The industrial conglomerate, Sulzer, said on Friday that the spin off of its medical division, Sulzer Medica, had cleared the final hurdle because no creditors had come forward to object to Sulzer's capital reduction.This content was published on July 6, 2001 - 11:56
The two-month legal deadline for creditors to report claims passed on June 26. With no claims filed, Sulzer's capital reduction was entered into the commercial registry on Thursday.
Sulzer is granting Sulzer Medica its independence next Tuesday by giving investors two Medica shares for two Sulzer shares. Sulzer currently has a 76 per cent stake in Sulzer Medica.
Sulzer Medica is being spun off at a time when the company is facing a crisis over its recall of faulty hip and knee joints that has left the company facing more than 800 lawsuits in the United States.
Around 2,100 patients have already undergone revision surgery to replace the faulty hip joints, which failed to bond properly because they were contaminated with traces of lubricants.
The company revealed on Wednesday that a further 100 patients had also received remedial surgery for faulty knee joints.
On Thursday, Sulzer Medica responded to the recall by revamping its entire orthopaedics division. The head of the joint and fracture care unit is leaving and the division is being split into two.
swissinfo with agencies
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