This decision comes after Greybull Capital, the British investment fund that acquired Novasco in July 2024, failed to deliver the promised 90 million euros in funding, contributing only 1.5 million euros despite a 75 million euro investment from the French government.

The ongoing crisis in the steel industry, driven by competition from Asia, high energy costs, and U.S. tariffs on steel and aluminum, has significantly impacted Novasco's operations.

Union representatives have expressed concerns about the company's financial viability, noting that current operations can only continue until late September or early October 2025.

The Strasbourg commercial court's ruling allows some breathing room for Novasco, with a deadline set for recovery project submissions by the end of September 2025.

Novasco specializes in manufacturing special steels primarily for the automotive and energy sectors, but has faced challenges including a decline in the automotive market and a recent workplace accident that halted production for seven weeks.

Despite the French government's financial support, Novasco's struggles have raised alarms, as union representatives describe Greybull Capital as a 'ghost shareholder' due to its lack of investment.

While several potential buyers have been interviewed, there is a notable lack of interest in Novasco's main site in Hagondange, which employs 450 workers.

Yann Amadoro, a union representative, has voiced concerns about the company's ability to recover financially under the current circumstances.

The court's decision aims to protect Novasco's finances and provide a framework for potential recovery, with the next hearing scheduled for September 25, 2025.

The situation remains precarious, as unions plan to hold a general assembly and a 'citizen march' in Hagondange on September 4, 2025, to address the crisis.

Novasco, previously known as Ascometal, has been placed in judicial recovery by the Strasbourg court, putting approximately 760 jobs at risk across its locations in Lorraine, Loire, and Nord.

In the past year, the French government has injected a total of 75 million euros into Novasco, with an additional 10 million euros expected by mid-August 2025.