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The listed builder of cooling towers and air purification systems Hamon is filing for bankruptcy. The company points an accusing finger at the banks.
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The more than century-old company has struggled from one restructuring to another for the past two decades, but now it seems to be finally over and out. Hamon’s management says it filed for bankruptcy on Monday at the company court of Walloon Brabant.
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Hamon had been in panic mode for some time and was ordered by the court in February until April 11 to present a reorganization plan. Before that, it would have had to admit that the latest recovery plan would cost much more than the announced 7 million euros and had applied for protection from the creditors. With an order book of 302 million euros, there was still a basis for recovery.
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Since then, the management, led by Fabrice Orban (ex-John Cockerill)searched for a solution. In recent weeks, several investors have shown ‘strong interest’ in one or more of Hamon’s assets, including carbon capture and the French operations. There were also two indicative bids from investors for the group’s best pieces.
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banks
But despite that ‘objective progress’, it was impossible to find a collective agreement with all stakeholders for a judicial reorganization, a press release said. The company mainly refers to the ‘continued refusals of the banks’. They refused to release certain securities or to grant new bank guarantees needed to start up projects that were won.
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Despite objective progress, a collective agreement in the context of the judicial proceedings has become impossible.
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As a result, the listed parent company Hamon & Cie (International) and two subsidiaries, Hamon Thermal Europa NV and Hamon Research-Cottrell NV, have filed for bankruptcy. The court will review the file on April 25. The exact condition of the dozens of subsidiaries in Europe and countries such as the US, Canada, India, Brazil, South Africa, China, South Korea and Malaysia remains unclear. Liquidation had already been started for a number of less performing daughters.
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The company, with headquarters in Mont-Saint-Guibert in Walloon Brabant, is known as a builder of cooling towers for large nuclear and other power plants and chimneys for coal plants. It also installs large air purifiers that enable chemical and petrochemical plants to meet environmental standards.
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Hamon takes its name from its founders, a French entrepreneurial family who had previously contributed to the construction of the Eiffel Tower. At the beginning of the last century, one brother founded a French company active in cooling towers and another did the same in Belgium. These activities benefited from the industrial revolution and are the basis of today’s Hamon, where cooling towers are still the banner.
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The company went through deep valleys and almost went under around 2005. After a spectacular rescue, CEO Francis Lambilliotte, a direct descendant of the Hamons, even received the Entreprise de l’Année trophy in 2011 from the hands of then Prime Minister Yves Leterme. But nothing came of the good prospects at the time, including with renewable energy projects.
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Despite references from all over the world, the company has been accumulating losses for years due to declining investments in fossil energy installations. In the last decade hardly any new large power stations were built on the European home market and the petrochemical industry also failed.
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Hole of 40 million
In addition, there were numerous operational problems, which caused Hamon to stumble from capital round to recovery plan. A painful low point was when a gap of more than 40 million euros was discovered in the accounts in 2014. Still, it took two years before CEO Lambilliotte understood that it was after 30 years was for a successor and a new wind. But the calf may have already drowned by then.
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Through several rounds of capital, the controlling Lambilliotte family was pushed aside. The Walloon government pumped tens of millions of euros into the company through the private equity firm Sogepa, both fresh capital and through loans, and aimed for restructuring.
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The Walloon government threatens to be left behind with a big hangover.
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The Walloon government now threatens to be left with a big hangover. Sogepa’s 63 percent stake becomes worthless after bankruptcy. Minority shareholders who have seen their investment evaporate year after year are also at risk of losing their last cents.
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Some banks and insurers also had an interest in the company as a result of a debt conversion during one of the bailouts in recent years. These are Monument Assurance Belgium (6.8%), Patronale Life (5%), ING Belgium (4.4%), BNP Paribas Fortis (4%) and KBC Bank (3%).
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Hamon achieved a turnover of 260 million euros in 2020 and then had more than 1,264 employees in 23 countries. The stock had been suspended since October last year. At the time, it was valued at 41 million euros, a fraction of its heyday value and of what fresh capital had been pumped into it in recent years.
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Challenge
- Walloon manufacturer of cooling systems for power stations and all kinds of flue gas cleaners for heavy industry.
- Founded just over 100 years ago by the Hamon family. Their direct descendants, the Lambilliotte family, were still at the wheel until a few years ago.
- The company achieved a turnover of 260 million euros in 2020 and had 1,264 employees in 23 countries.
- Hamon had been in crisis mode for years, struggling from capital round to capital round.
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:quality(70):focal(1150x515:1160x525)/cloudfront-eu-central-1.images.arcpublishing.com/liberation/THSGMTD44NB3POWTBV3CUR6B6U.jpg?resize=150%2C150&ssl=1 "Fran Lebowitz, it was bad faith in New York – Liberation")
