Berlin refuses loan request from retailer Arcandor

By AFP

July 15, 2010 Updated Jun 8, 2009 at 6:01 AM CDT

German officials on Monday rejected a request from the troubled retail group Arcandor for state loan guarantees.

Arcandor, which owns the Kardstadt chain and a majority share of the Thomas Cook travel agency, had asked for 650 million euros (900 million dollars) in guarantees to help refinance loans that come due at the end of the week.

The group might have to file for insolvency, and Finance Minister Peer Steinbrueck told ARD television on Monday that "a bankruptcy is not totally excluded."

Arcandor has also requested 437 million euros in six-month credits from the state-owned development bank KfW.

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