Paris, Sept 23: French engineering giant Alstom was saved from near-certain bankruptcy after its directors approved a state-backed 3.7-billion-dollar rescue package that also found favour with EU competition authorities. A statement from Alstom, makers of fast trains, ocean liners and power stations, said the plan called for contributions from creditor banks as well as 800 million euros provided by the French government.
"This plan provides Alstom with a strong base from which to move ahead," company chief executive Patrick Kron said yesterday.
European Union competition commissioner, Mario Monti, welcomed the French rescue plan, saying it was consistent with EU competition rules.
The commission last week rejected an initial French proposal, on grounds that it failed to honour such regulations, and had given Paris until yesterday night to draft a new package.
The new plan made no provision for the French state to take an immediate and direct stake in Alstom, a proposal to which the European Commission -- the EU's executive arm -- objected in the earlier package. That plan called for the state to acquire a 31.5 per cent interest.
"We have been able to save Alstom from bankruptcy," French prime minister Jean-Pierre Raffarin said, adding that the company had been within "two fingers" of collapse.
"The bankruptcy of Alstom would have been catastrophic," he added. Bureau Report