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The US$1.5 billion US$4.9 billion (£2.5bn) bailout for asbestos paper manufacturer Archibalds Australia was approved by Australia’s National Infrastructure Commission (NIC) and is expected to be approved by the European Commission in the coming days. 

In a statement, ASIC said the company had a long history of providing products and services to customers in Australia.

“The Australian Government has approved the funding of $2,3 billion in loan guarantees for Archibaulds Australia to help it transition to a new and better-managed business model,” the statement said.

“Archibalding is committed to delivering a highly competitive business model that maximises return on investment for the Australian consumer.”

Archibauld was granted an extra $2 billion from the $1.9-billion in loans to help reduce the risk of asbestos paper contamination and improve quality control.

“We are delighted that the Government of Australia has committed to support Archibault with its financial assistance for the construction of a new business model to ensure that the Australian taxpayer is fully informed of the risks posed by asbestos,” ASIC’s managing director of finance and risk, Ian Robertson, said in a statement.

“We look forward to working with Archibaults Australian customers to help them through the transition to this new business.”AAP

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