Debts in the Billions: Corporate Bankruptcies in Austria Remain at Record High

Austria is heading for another record year in company bankruptcies. By mid-year, the number of company insolvencies is 8.9 percent above the level of the previous year's period, as reported by Creditreform, which represents creditors, on Wednesday. 2,170 proceedings were opened and another 1,500 were dismissed due to lack of assets. "There have never been so many insolvencies in the history of the 2nd Republic," explained Creditreform Managing Director Gerhard Weinhofer.

Five Billion Euros in Debt in Austria - and That in the First Half of the Year Alone

In total, the first half of the year involved debts of around 5 billion euros and 8,000 affected jobs. The insolvency with the most employees involved Palmers Textil AG with 515 affected employees, followed by Teufelberger with 186 and Tutic Bau with 169 workers.

Signa Still at the Top of Insolvencies

In terms of the amount of debt, Herkules Holding, belonging to Signa, was in first place with liabilities of 1.02 billion euros, followed by Signa Prime Capital Invest GmbH with 310 million euros and the property developer Süba AG with 266 million euros. With 6B47 and GR Real, other property developers are among the ten largest company bankruptcies.

(APA/Red)

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