BRUSSELS, BELGIUM - Belgian transformer manufacturer CG Power Systems, the former Pauwels Trafo, and CG Holdings have been ruled bankrupt by the Commercial Court in Mechelen, Belgium.

The transformer manufacturer had been in financial trouble for months after the company's parent group in India came under fire from critics for fraud. On January 15, the two companies were placed under the provisional administration of two lawyers and are now looking for a buyer.

Another seriously affected European branch of CG Power Systems is its subsidiary in Hungary, which has been up for sale for years.

The management of the Irish branch of CG Power Systems, based in Cavan Town, say that the problems at their European headquarters in Belgium "will not affect the operation of the Irish plant". However, the staff at the factory say they are concerned about their future as the company is rumored to be seeking a buyer for the manufacturing plant.

CG Ireland comprises two entities - CG Automation and CG Power Systems. Both are elements of CG's products for distribution and power transformers, transmission, generation and renewable energy products, as well as industrial switchers.

According to the Anglo-Celt, sources say the Cavan site has been on the market as a going concern for a number of years, with a buyer almost secured in 2015, but that sale fell through.

Source: vrtNWS; The Anglo-Celt