It took three months and an audit to complete the round. This Wednesday 1er December, Bercy announces that an agreement has been reached to come to the aid of the glass giant Arc International which has been going through new financial difficulties for a few months, “Both for economic reasons and difficulties in the operational management of the company”, we specify at the Ministry of Industry. A hearing at the Lille Commercial Court allowed the morning to lead to the development of an agreement which provides for an envelope of 45 million euros to allow the company to complete its year. The agreement will have to be approved by the court in mid-December.
On September 19, the Minister for Industry, Agnès Pannier-Runacher warned the management of the northern company: “Shareholders and managers need to take their responsibilities. We can understand that, from time to time, there are difficulties in the conduct of the life of a company, but we are a little amazed by this situation which has nothing to do with the know-how of the employees, neither with the order books fully filled, nor with the recognition of the Arc brand. “
“Relieved but doubtful”
After an industrial audit and the announcement of the contribution of funds by the shareholders, the Ministry of Industry, “Reassured”, granted aid of 14.7 million euros, to which are added 16 million from equity shareholders, 13 million from a new private lender, and an envelope of 1.3 million from local authorities (1 million from the Hauts-de-France region and 300,000 euros from the agglomeration community of the Pays de Saint-Omer). To these loans is added a State subsidy of 4 million euros for decarbonization as part of the recovery plan.
A price increase of 10-12% was passed on to customers
Acquired by the American investment fund Peaked Hill Partners (PHP) from the Durand family, in 2015, Arc International had already obtained a State loan in May 2020 of 31 million euros, due 4 months, which had been refinanced by a public loan of 108 million euros on September 4, 2021. “As secretary of the CSE, I am relieved but doubtful about our ability to lead changes in mentality in this company of 4,700 employees, Patrice Bollengier reacted. It is extremely complicated. Our main problem is related to the organization and our internal functioning. “
The general manager of the northern site, in post since 2017, Tristan Borne, was dismissed in early September. The succession has since been provided by Nicholas Hodler, the group’s boss. Management and shareholders announced three months ago a need of at least 20 million euros to complete the year. In question, “A temporary cash flow lag linked to internal and external elements, including the increase in the cost of raw materials or the tripling of the price of gas”, had detailed the direction. A price increase of 10-12% was passed on to customers.
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