Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
The Fundição de Dois Portos, a Portuguese foundry located in Torres Vedras, will close causing 100 workers to lose their jobs. The contracts of these 100 workers were suspended in March.
In the creditors’ assembly, the insolvency of the company was approved. No recovery plan will be adopted.
The deterioration of economic profitability, the liquidity crisis, the accumulation of debts of the clients and the cash management problems are some of the causes of the insolvency.
The foundry has more than two hundred creditors and debts amounting to 23 million euros. Among the creditors, there are around 100 workers who will receive a total amount of 2 million euros due to redundancy payments, wages, holidays and Christmas allowances in arrears.
Founded 65 years ago, the foundry sales accounted for 5.2 million euros in 2011. 50% of its production was for export (mainly to France, Switzerland and North Africa); in the order book the company had sales for 1.2 million euros.
Nonetheless, the company closed last year with a loss of nearly one million euros and liabilities for 16 million euros.
Eurofound (2013), Fundição Dois Portos, Bankruptcy in Portugal, factsheet number 75435, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/75435.