Now it has apparently been resolved: the insolvent Zillertal manufacturer of traction cables “GA Actuation Systems GmbH” is going to close. According to the Credit Protection Association (KSV1870), more than 70 employees will lose their jobs in the coming days.
The first hearing in the insolvency proceedings of GA Actuation Systems GmbH took place at the Innsbruck court on Wednesday. “As expected”, the trustee has “submitted the application to close the company”, the KSV said in a broadcast. 73 employees would lose their jobs as a result. The outstanding insolvency claims recognized so far amount to 5.3 million euros. To date, 135 creditors have filed claims.
“Long-term continuation impossible”
“As has been known for weeks, a long-term continuation with subsequent restructuring of the company is not possible,” continues KSV. He assumes that the insolvency court will take a closing decision in good time. The employees would lose their jobs, “with all their outstanding remuneration claims secured at 100 percent through the IEF-Service GmbH (Insolvency Payment Guarantee Fund).”
Bankruptcy administration had been going well in recent weeks, “goods in stock were still being processed and manufactured products were being sold at reasonable prices.”
According to the Credit Protection Association, however, it is expected that the level of liabilities will rise sharply again in the coming weeks due to claims from employees.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
