GFG Alliance’s Aluminum Units Seek Protection from Creditors

SEATTLE (Scrap Monster): The French aluminum businesses belonging to Sanjeev Gupta-owned GFG Alliance have reportedly sought protection from creditors. Alvance Aluminum Group has voluntarily entered into ‘reconciliation proceedings’ supervised by a court-appointed agent.

According to company press release, the mediator will try to protect the company’s aluminum making assets from insolvency, by trying to arrive at necessary arrangements between the French units and their creditors. This reconciliation process is expected to last for a long period of up to 10 months. The above moves by the company were first published by the Australian Financial Review.

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The e-mail statement by company spokesperson said that the management will work in collaboration with stakeholders and the conciliator to chalk out sustainable solutions, so as to ensure continuity of business.

GFG Alliance had acquired Alvance business unit almost two years back, pledging to revitalize their operations in order to make them more environment-friendly. The units, which mainly serve automotive industry, employ nearly 1,000 people.

The GFG Alliance has been struggling for finances, following the collapse of Greensill Capital-GFG’s primary lender.