After Bankruptcy: Palmers on a Difficult Search for Investors

In Palmers' bankruptcy filing, liabilities of 51 million euros and assets of 11.50 million euros were mentioned. With additional secured outstanding debts, the liabilities rise to about 69 million euros. A loan of 14.4 million euros, secured by COFAG at 90 percent, is not counted among the secured outstanding debts. Here, the Austria Wirtschaftsservice (AWS) acts as an insolvency creditor, according to Gerhard Weinhofer from Creditreform to APA.

Turkish and Chinese Interest in Palmers

The application for a restructuring process under self-responsibility had to be submitted "because necessary capital inflows did not occur in a timely manner," the company stated. Apparently, they were looking for an investor. "There is talk of a Chinese and a Turkish investor," noted Weinhofer. More details will be announced at the creditors' meeting in early March. Since a restructuring is being sought, the creditor protector assumes that the management will cooperate with the restructuring administrator Maria-Christina Nau.

In addition to the already announced closure of 20 branches, no further locations are to be closed for the time being. A reduction in staff is also not planned, although the company had precautionarily registered layoffs with the AMS at the beginning of February. The employees have not received any money since January. However, the 35 branches operated on a franchise basis are not affected by the bankruptcy. The employees can expect to receive the outstanding salaries promptly, noted Weinhofer. "In Austria, this takes weeks, not months."

(APA/Red)

This article has been automatically translated, read the original article here.