Eramet Faces Management Crisis as CFO Suspension Deepens Instability
Eramet, a French mining group, is experiencing a significant management crisis following the suspension of its Chief Financial Officer (CFO), Abel Martins-Alexandre. This development comes shortly after the ousting of its former CEO, Paulo Castellari, on February 1. The company announced that Martins-Alexandre was temporarily relieved of his duties to facilitate an independent investigation into his management methods. This investigation was initiated after several employees from the finance department raised concerns. Despite the company's statement that the CFO's suspension is unrelated to Castellari's dismissal, the timing has exacerbated the company's instability. Eramet's shares fell by 6% in Paris, marking it as the biggest loser on the SBF 120 index. The company, which has a market capitalization of nearly 2 billion euros, is facing potential downgrades by ratings agencies due to its strained financial situation.