The rescue of Alstom

In 2003, Alstom was on the verge of bankruptcy. How could an international, industrial company, more than a hundred years old, have reached such a position in a rapidly expanding market ? What was the way out of this situation ? Alstom's difficulties were the result of a combination of four factors : a technical problem, an inadequate operational performance, an impossible financial situation, and the temporary collapse of its most important market.

A rescue operation was hampered because these four factors had to be handled simultaneously and the various bodies involved, including banks, shareholders, clients and employees had to be convinced that there was a future for Alstom, in spite of feelings of pessimism and general distrust. Acting as a catalyst, the French state took on the challenge of making a successful last-ditch attempt to turn the company around.

A propos de l’intervenant: Patrick KRON

Studied at the École polytechnique and was an engineering student in the prestigious Corps des Mines. He began his career in the Ministry for Industry (1979 - 1984) before joining the Pechiney group where he occupied various operational and financial positions. In 1993, he became a member of the Pechiney executive committee and was chairman and managing director of Carbone Lorraine from 1993 to 1997. From 1995 to 1997, he was in charge of the food packaging, hygiene and beauty activities at Pechiney and was Chief Operating Officer of American National Can Company in Chicago. He was president of the Imerys board of directors from 1998 to 2002 before joining Alstom. He has been managing director of Alstom since January 1st, 2003, and administrator since July 24th, 2001. He was appointed chairman and chief executive officer on March 11th, 2003.