Alvance Aluminium branch asks French court for administration

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PARIS, April 20- The French branch of the British businessman Sanjeev Gupta's GFG Alliance asked a British court on Tuesday to put three of its sites under administration, a spokesman said.

The hearing followed the decision last week of Alvance Aluminium to file for voluntary administration for the factories in central France- Alvance Aluminium Wheels, Alvance Aluminium Poitou and Alvance Foundry Poitou.

All three companies faced structural changes in their markets which have been compounded by COVID 19 and the fall of GFG Alliance's working capital support after the collapse of Greensill Capital, said an Alvance spokesman.

The collapse of supply chain finance firm Greensill, a new creditor of GFG, has forced the group to seek financial aid.

Greensill was a major source of funding for Gupta as he purchased many French manufacturing facilities in the last few years, including several struggling metals plants.

The commercial court in Paris that heard Alvance's request was due to issue a decision on Friday detailing the duration of an administration period, Gery Begeault, a CGT union representative at Alvance Aluminium Poitou, said.

Alvance also has an aluminium smelter in Dunkirk, which is Europe's largest primary aluminium production site in Europe.

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