Novares Group is reopening 13 of its 19 European production sites following a liquidity injection by shareholders Equiston and BPI of 45 million euros ($49 million).
The company filed for bankruptcy protections in France on April 29, "similar to the American 'Chapter 11,'" according to a news release by Novares May 18.
"The company was hit hard in the last few weeks with the closure of 40 out of its 45 plants worldwide over a long period," the release said. "Plants are now reopening in France, Spain, Italy, Portugal, Serbia, Turkey and Romania, with better than expected production rates."
"The results for 2019 and for the beginning of 2020 have shown that the foundations of the Novares Group are solid," CEO Pierre Boulet, CEO said in the release. "But the COVID-19 crisis has taken a serious toll on our cash flow, which has been largely factored. The overriding aim of being able to ensure deliveries to our customers, as of May, has forced us to seek legal recourse. We are now resuming our operations in Europe, and are confident that a solution will be found in the coming days to enable the company to restart activities at its American plants, as well as to ensure the future of the Novares Group in the long term."
Novares has received seven investment proposals. Four of those proposals would "ensure the financial continuity required at the end of the receivership procedure, expected on May 27," the release said.
"The company and the procedural bodies are currently carefully examining these four options so as to ensure a successful outcome and to come to a decision before the end of the month."