Mecachrome International Inc. , the Renault F1-linked motor sport engineering company, seems on the brink of collapse.
The struggling Montreal based firm last week sought court protection from its creditors under the Companies Creditor Arrangement Act, which relates to bankruptcy procedures in Canada.
The company, involved in the preparation of Renault's Formula 1 engines and also the chief supplier to GP2, also said its French subsidiaries have obtained similar creditor protection.
"Our goal is to allow Mecachrome to continue to operate as a going concern for the benefit of all those affected, including our many loyal employees, customers and suppliers," Mecachrome president Christian Jacqmin said.
Last month, however, the company admitted it had "substantial doubt" about its "ability to continue as a going concern".
The news about Mecachrome comes amid the global financial crisis, with Jacqmin admitting the "industry-wide challenges" and the company's "inability to raise capital in the current market environment".
photo:Renault
The struggling Montreal based firm last week sought court protection from its creditors under the Companies Creditor Arrangement Act, which relates to bankruptcy procedures in Canada.
The company, involved in the preparation of Renault's Formula 1 engines and also the chief supplier to GP2, also said its French subsidiaries have obtained similar creditor protection.
"Our goal is to allow Mecachrome to continue to operate as a going concern for the benefit of all those affected, including our many loyal employees, customers and suppliers," Mecachrome president Christian Jacqmin said.
Last month, however, the company admitted it had "substantial doubt" about its "ability to continue as a going concern".
The news about Mecachrome comes amid the global financial crisis, with Jacqmin admitting the "industry-wide challenges" and the company's "inability to raise capital in the current market environment".
photo:Renault