Mecachrome, which has enjoyed a long relationship with Renault, having originally begun as a sub-contractor before preparing the French manufacturer's customer engines in the Turbo era and again in 1992 when it supplied Ligier, has sought court protection from its creditors under the Companies Creditor Arrangement Act (Canada)

Following Benetton's acquisition of Ligier's engine supply in 1995, Mecachrome was to supply some of the engines for both the Italian team and Williams.

In 1996, when Renault announced its decision to leave F1, it sold all its engines to Mecachrome, which was subsequently bought by Flavio Briatore in 1997.

In 1998, the Mecachrome Renault engines were used by both Benetton and Williams, but with little success. For 1999, the company signed an exclusive distribution contract with Super Performance Competition Engineering, a company managed by Briatore, which re-badged the engines as Supertec.

Mecachrome continues to supply components for the Renault F1 team, however, in late Summer, it was forced to issue a statement after reports appeared in a Swiss magazine claiming that it was to withdraw from F1 following Renault's decision to supply its own high-performance components.

Other than F1, Mecachrome, which was founded in 1937, also assembles, maintains and rebuilds the Renault powerplants used in the GP2 Series. In addition, it is involved in the design, engineering, manufacture and assembly of components for both the aircraft and automotive industries. The company operates eleven facilities, principally in France and Canada, and employs over 2,000 people.

Announcing the move, Mecachrome's president and CEO, Christian Jacqmin, said: "Our goal is to allow Mecachrome to continue to operate as a going concern for the benefit of all those affected, including our many loyal employees, customers and suppliers. We believe that the steps we are taking today, combined with the financing we are in the process of finalizing, will provide us with the ability to protect the value of the business for our stakeholders.

"Today's filings are the result of industry-wide challenges in our business segments, combined with Mecachrome's leverage and its inability to raise capital in the current market environment. The steps we initiated today will allow Mecachrome to make the necessary changes to ensure its long-term viability."