France-based chemicals company Rhodia has signed an agreement to sell its 50% stake in polyamide yarn producer Nylstar for €1, to a third party agent acting on behalf of a consortium of Nylstar's credit banks. SNIA, Rhodia's partner in the joint venture, has also signed an agreement to sell its 50% stake. The sale will be effective once the necessary regulatory formalities have been completed.

This agreement forms part of the financial restructuring of Nylstar through a debt/equity swap to give the company a restructured balance sheet and a reduced level of debt. Rhodia will remain a raw material supplier to the company.