To restore its financial situation, the French railway manufacturer Alstom announced this Wednesday, May 8, an increase in its capital of around 1 billion euros. A stronger increase than expected, which must be launched by the end of September. Two major shareholders, Caisse de Dépôts du Quebec and BPI France, have already indicated their intention to subscribe.
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In addition to the capital increase, the French rail giant will also launch a bond issue for around 750 million euros. Added to this is the sale of assets already underway. Alstom has, in fact, sold its signaling activity in North America.
This recovery plan has a social cost. The manufacturer announced the elimination of 1,500 administrative positions worldwide, including around 300 in France. The objective is to reduce its debt by two billion euros by 2025.
Despite a full order book, the railway manufacturer has, in fact, major cash flow problems, linked to excess stocks and delayed contracts. The purchase in 2021 of the transport activities of Canadian Bombardier is also weighing on the group’s finances. With this restructuring, Alstom hopes to obtain the favor of rating agencies which assess the solvency of companies.
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