French court orders opening of receivership proceedings at some Arjo sites
Thursday, January 10, 2019
The Commercial Court of Nanterre has ordered the opening of safeguard and receivership proceedings for some of Arjowiggins’ French subsidiaries.
Arjowiggins’ parent company Sequana had filed petitions to open proceedings earlier this week in order to “protect their interests” [provide them with temporary creditor protection in France].
This came after the group’s planned €125m (£113m) deal to sell Arjowiggins’ €528m turnover Graphic and Creative Papers businesses to Dutch firm Fineska fell through after the buyer pulled out due to deteriorating market conditions.
In a statement, Sequana said that following the hearings held on Tuesday (8 January), the safeguard procedure (sauvegarde) was opened in favour of Arjowiggins and the French companies Arjowiggins Papers and Arjowiggins Creative Papers.
A receivership procedure (redressement judiciaire), meanwhile, was opened in favour of Arjowiggins Papiers Couchés, Arjowiggins Le Bourray, Greenfield and Arjowiggins Rives.
Sequana said the move “will help support the measures undertaken to find buyers for the various businesses of Arjowiggins and preserve the interests of its employees, customers, suppliers and stakeholders”.
The group also requested the trading of its shares to be resumed on Euronext today; it had asked for them to be suspended earlier this week.
French newspaper Ouest France has reported that all machines at Le Bourray were stopped yesterday because of a lack of raw materials and energy.
With 262 staff, this site produces the Eural brand, RePrint, Cyclus, Kaleido tissue paper and the whole Office ranges on three paper machines.