French steel maker Ascometal goes into administration
Post Date: 10 Mar 2014 Viewed: 307
Reuters reported that French steel maker Ascometal went into administration putting at risk up to 2,000 jobs in a fresh headache for the Socialist government as it tries to bring down unemployment from record levels.
Ascometal, whose roots lie in the former French steel firm Usinor that was later absorbed by No. 1 global steel giant ArcelorMittal has been hurt by an economic downturn in Europe, particularly in the automotive sector.
Declining demand in Europe, where Ascometal generates most of its sales has undermined a 2011 takeover of the company by US investment fund Apollo Global Management and put Apollo at odds with banks that helped finance the deal.
Friday's decision by a commercial court near Paris to put the company in administration came after Apollo failed to reach an agreement with the banks on a debt restructuring.
Mr Arnaud Montebourg industry minister of France said that “The government would aim to find a long term industrial solution for Ascometal and had already received expressions of interest. The coming weeks will be devoted to finalising these potential offers."