CF Gomma refinances

Passirano, Milan - C F Gomma, the Italian automotive supplier has completed a re-structuring of its finances with a cash injection of Euro 83.9 million. The cash comes from a new company, C.F. Holding Rubber Spa, a company created by C F Gomma's chief executive, Pierfederico Cancarini.

C F Gomma said the recapitalisation is the first step in the relaunch of C F Gomma's industrial activities. The full scope of the restructuring plan will be introduced to stakeholders during September.

Cancarini said most of C F Gomma's clients have received with satisfaction the planned relaunch of the Groupand he renewed focus on core businesses.

C F Gomma suffered from production difficulties at the beginning of July and was blamed for stopping production at up to five vehicle construction factories operated by Fiat. The statement from C F Gomma did not mention Fiat and did not make any comment on Fiat's threat to recover damages from its supplier.

The situation arose after a French court rejected C F Gomma's plan to revitalise its French factory at Barre St Thomas, and allowed a foreign company to bid for ownership of the factory. Workers in other C F Gomma factories went on strike to protest against the predicted sell-off of the French unit, and this made it impossible for the company to supply all its customers.

The Group supplies antivibration systems hoses and packings, operating mainlyas an original equipment suppliert, but also in the aftermarket . Part of the activity is dedicated to the production of compounds, used internallyand on the open market.