Mr Gupta's Alvance Aluminium 3 Units in France Face Bankruptcy
Agence France Presse, citing company and unions sources, reported that 3 French auto parts factories belonging to Alvance Aluminium, part of the
Agence France Presse, citing company and unions sources, reported that 3 French auto parts factories belonging to Alvance Aluminium, part of the steelmaking GFG Alliance, will file for bankruptcy protection, the first in the steel magnate's Mr Sanjeev Gupta’s empire to seek bankruptcy protection since the collapse last month of Greensill. As per AFP report, the factories set for bankruptcy protection are two foundries at Poitou plus an alloy wheel factory near Chateauroux in France. AFP report quoted Alvance spokesman as saying that “The decision does not include Alvance sites in the French city of Dunkerque, Duffel in Belgium or Lochaber in Scotland, which are all functioning normally, thanks to their strong positions on the market and positive cash flow."
A union representative said they were informed bankruptcy proceedings should start by the end of the month and would provide time to find a buyer.
Australian Financial Review had reported that “Alvance Aluminium Group entered voluntarily into reconciliation proceedings supervised by a court-appointed agent. The mediator will try to stave off insolvency by working out arrangements between the French units and their creditor, a process that could last as long as 10 months. The management of those businesses will now work collaboratively with the conciliator and the businesses’ stakeholders to find sustainable solutions for the sites and ensure business continuity.”
The Alvance factories make car parts and employ almost 1,000 workers between them. GFG acquired them two years ago with a pledge to save jobs, revitalize their operations and make them more environmentally friendly
Following the collapse of Greensill there has been growing concern about the future of GFG and its Liberty Steel unit, which together employ 35,000 people worldwide. But Mr Gupta ruled out a bailout and factory closures at the start of April, saying his company which generates USD 20 billion in annual revenue is globally profitable.