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British car company producing in Romania, on the verge of bankruptcy

de A.C.
Luni, 8 decembrie 2008, 17:53 English | Business

British car components producer Wagon PLC entered a special administration status, after discussions with the main shareholders on a refinancing measure failed, a press release of the company informed. The British company also holds a factory that it just opened this year in Pogoarele, nearby Buzau, South Romania. The crisis is the main cause that lead the company on the verge of a bankruptcy.

The company, controlled by Wilbur Ross, an American rich businessman did not manage convince the banks to lend him more money. Banks like Royal Bank of Scotland or Lloyds TSB refused to support the company with another 12 million euro.

The company, with headquarters in Birmingham has 6300 employees globally and declared that UK employees have every chance to be fired. However, the company holds that its other factories in Spain, Romania, Italy or Turkey might continue their activities.

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