Metaleurop Claims Court Approves Reorganization Plan

According to published reports, Metaleurop, the French-based lead and zinc producer, claims that a commercial court approved a plan to put the company under administration rather than liquidate its assets.

The process allows the company, which has been under significant pressure due to its inability to make payments on its short term debt, more time to come up with a financial arrangement to allow it to continue to operate.

In an unrelated issue, Sita, the French waste management concern, said it is in the process of acquiring one of Metaleurop’s former facility. The operation, Megaleurop Nord SA, is located in northern France.

The site has been contaminated by the lead smelting that took place at the site. Sita said the cleanup effort will cost about 22 million Euros, two-thirds of which will be subsidized by the French state and the regional government.

At the beginning of this year Metaleurop abandoned the site, allowing it to go into receivership.

A court dealing with the case designated Sita to acquire the site. An appeals court has yet to decide whether Metaleurop should carry responsibility for the Metaleurop Nord bankruptcy. Dow Jones