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.