First Parts Of Billionaire Sanjeev Gupta's Steel Empire Face Bankruptcy
Three French auto parts factories belonging to Alvance Aluminium, part of the steelmaking GFG Alliance owned by Indian-British billionaire Sanjeev Gupta, will file for bankruptcy protection on Friday, the company and unions said.
Three French auto parts factories belonging to Alvance Aluminium, part of the steelmaking GFG Alliance owned by Indian-British billionaire Sanjeev Gupta, will file for bankruptcy protection on Friday, the company and unions said.
The factories will be the first in the steel magnate's empire to seek bankruptcy protection since the collapse last month of Greensill, a British firm which was a major provider of trade finance for GFG Alliance.
The factories set for bankruptcy protection are two foundries at Poitou plus an alloy wheel factory near Chateauroux which employ some 850 staff.
An Alvance spokesman said the decision does not include Alvance sites in the French city of Dunkerque, Duffel in Belgium, or Lochaber in Scotland, which he said "are all functioning normally, thanks to their strong positions on the market and positive cash flow".
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.
Gupta ruled out a bailout and factory closures at the start of April, saying his company which generates $20 billion in annual revenue is globally profitable.
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.
The factories in particular serve French carmakers Renault and Peugeot.
While some of their operations have been hurt by the shift away from diesel engines, others have been hit by foreign competition.
The Alvance spokesman said the company had injected over 45 million euros ($54 million) into the sites but that supporting them "could not be maintained after the collapse of Greensill".
The factories will be the first in the steel magnate's empire to seek bankruptcy protection since the collapse last month of Greensill, a British firm which was a major provider of trade finance for GFG Alliance.
The factories set for bankruptcy protection are two foundries at Poitou plus an alloy wheel factory near Chateauroux which employ some 850 staff.
An Alvance spokesman said the decision does not include Alvance sites in the French city of Dunkerque, Duffel in Belgium, or Lochaber in Scotland, which he said "are all functioning normally, thanks to their strong positions on the market and positive cash flow".
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.
Gupta ruled out a bailout and factory closures at the start of April, saying his company which generates $20 billion in annual revenue is globally profitable.
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.
The factories in particular serve French carmakers Renault and Peugeot.
While some of their operations have been hurt by the shift away from diesel engines, others have been hit by foreign competition.
The Alvance spokesman said the company had injected over 45 million euros ($54 million) into the sites but that supporting them "could not be maintained after the collapse of Greensill".
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
