Recast Alstom rescue plan backed by Paris and Brussels.

Financial News, September, 2003

Alstom and its chief rescuer, the French Government, have bowed to the demands of European Commission, agreeing to a new financial restructuring plan which restricts the state from taking a direct equity stake in the engineering group.Mario Monti, European Commission competition chief, Monday praised the French authorities for being 'constructive' in redrafting the [euro]3.2bn rescue plan, without which Alstom was headed for bankruptcy.

The new plan will see the Government lend Alstom [euro]800m, and Alstom's consortium of 32 banks to refinance a further [euro]2.4bn. Under the new plan, the State will subscribe to [euro]800m-worth worth of long-term bonds, including [euro]300m-worth of convertible bonds.