Fagor is part of Mondragon, the vast Basque conglomerate that runs dozens of businesses in the region. But Mondragon refused to underwrite the billion euro debt Fagor has run up, which is what caused the bankruptcy in the first place, and doesn’t seem keen on putting any more cash into the company.
Arantza Tapia, Basque Minister for Economic Development, hinted today that we may as well switch off the life support for the company. “It looks as if we’re looking at a failed business here” she said, adding, in a surprising frank way that the Andaluzes could well imitate, “we won’t put any public money if the private sector which is already committed to Fagor… decide not to throw good money after bad”.
She added that the Basque Country regional government won’t take any decision until Mondragon makes it’s own position clear regarding a bailout of Fagor.