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Business News/ Companies / News/  Sanjeev Gupta’s French aluminum units seek creditor protection
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Sanjeev Gupta’s French aluminum units seek creditor protection

Alvance Aluminium Group entered voluntarily into ‘reconciliation proceedings’ supervised by a court-appointed agent

Liberty Steel's Sanjeev Gupta. (FILE PHOTO: REUTERS)Premium
Liberty Steel's Sanjeev Gupta. (FILE PHOTO: REUTERS)

French aluminum businesses belonging to embattled British metals mogul Sanjeev Gupta have sought protection from creditors, the company said on Sunday.

Alvance Aluminium Group entered voluntarily into “reconciliation proceedings" supervised by a court-appointed agent, 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.

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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Published: 11 Apr 2021, 10:01 PM IST
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