Gupta’s French Downstream Aluminum Units Seek Protection
A significant part of the French aluminum businesses belonging to embattled British metals mogul Sanjeev Gupta has sought protection from creditors, the company said on Sunday.
Alvance Aluminium Group entered voluntarily into “conciliation proceedings” supervised by a court-appointed agent for its three downstream businesses, its spokesman said in a statement. 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. Its upstream smelter in Dunkirk is not affected.
The move, first reported by the Australian Financial Review, comes as Gupta fights to save his business following the collapse of key financier Greensill Capital.
“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 spokesman said by email.
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, the AFR said.
Greensill collapsed last month after its key insurer pulled the plug on a policy that protected investors in its bonds.
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