The employees of troubled French supplier Reims Aerospace have been forced to abandon their plan to take over the business, having failed to raise the necessary €3 million ($4 million) funding.

The subcontractor’s management team is now awaiting local authorities’ approval for a recovery plan that it put together with the help of a new shareholder, French financial group Green Recovery.

The investor is also majority shareholder of former sister company Reims Aviation Industrie, which carries out manufacturing activities for the F406 special mission aircraft.

President Gérard Russo says the local commercial court (“tribunal de commerce”) dealing with the plan is expected to announce its decision on 19 December, but “the court has already formed a favourable opinion of the plan that has been presented.”

Reims Aerospace, which posted turnover of €18.6 million ($23.5 million) in 2005, is currently in administration. The company specialises in the design and manufacture of aerospace assemblies, and counts Airbus and Dassault among its customers.

The plan for employees to take over the business was originally set to be completed by the end of November.