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WALLOON INDUSTRIAL ICON HAMON FILES FOR BANKRUPTCY


 * Business
 * April 14, 2022
 * No Comments




13 april 2022
today at
17:15


–

The listed builder of cooling towers and air purification systems Hamon is
filing for bankruptcy. The company points an accusing finger at the banks.

–

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.

–

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.

–

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.

–




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.

–







Despite objective progress, a collective agreement in the context of the
judicial proceedings has become impossible.



–

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.

–

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.

–

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.

–


Full screen display







–


–
–

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.

–

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.

–




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.

–

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.

–







The Walloon government threatens to be left behind with a big hangover.



–

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.

–

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%).

–

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.

–

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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