Aluminium company Aldel bankrupt
Aluminum company Aldel in Delfzijl went bankrupt. 300 Dutch employees will lose their jobs. In addition, 250 people with temporary contracts and 300 people with supply companies will be laid off.In the past few weeks the company has been unable to find funders for the current operating deficit of an estimated 24 million euros. The owner of the company, the American Gary Klesch, will not pay for the shortfall.
Aldel has been struggling for years. In September, the company sounded the alarm about the high electricity bill, allowing competitors to operate much cheaper in Germany.
A bridging loan of 8 million euros was provided in consultation with Minister Kamp of Economic Affairs and the province of Groningen, more or less assuring the survival of the company until the end of this year.
In the past few months, a plan was hatched to install a cable for the company to provide cheaper electricity from Germany. The government indicated its willingness to pay for the construction of the power connection of approximately 20 million euros. The project should be finished in 2016.
The problem for Aldel is that the company is facing a monthly loss of 1.2 million euros until that time. Nobody wants to pay for the gap of 24 million.
Power supplier EON, who supplies power to Aldel, terminated the contract per January 1st. EON has no confidence Aldel will be able to pay its bill after January 1st.