Australian maker of metal products National Forge has been placed in receivership. The origin of the company’s problems lies with Enron’s cancellation of orders for power turbines with General Electric Power Systems Aerofoils. This led to a reduction in National Forge’s orders for titanium turbine blades by ASD 6.7 million, with ASD 5.91 million of the cut in the first half of 2002. This was equivalent to 12% of the company’s 2001–02 revenue. National Forge’s debt stood at ASD 15.6 million at the balance date. According to National Forge chairman, John Morgan, the company would face unsustainable losses. GE Capital Finance appointed David McEvoy and Nick Brooke of PricewaterhouseCoopers the receiver managers.
