over, over! Real estate company Bau & Boden from Linz has filed for bankruptcy at the Linz regional court. But the insolvency proceedings have not yet been opened because the advance payment of € 4,000 has not yet reached the court. According to the bankruptcy protection representatives, the company’s liabilities amount to about 2.8 million euros.
Since the tragic death of the majority shareholder, Andreas Ortner, on the night of December 6, rumors that the company’s ailing financial situation had been the deciding factor have not ceased. Reportedly, Bau & Boden’s last two balance sheets were no longer signed. The two remaining directors still wanted to negotiate with banks and investors in mid-January. The secretary of the “Krone” was available on Wednesday, but the administrator did not call back.
Liabilities of approximately 2.8 million euros
Now the creditors’ associations went on the offensive: in addition to the Credit Protection Association 1870, the Alpine Association of Creditors also confirmed that Bau & Boden Immobiliengesellschaft mbH had filed for bankruptcy. There are debts of approximately 2.8 million euros. The company says it has only little liquid assets – namely a bank balance of 7,000 euros.
Hopes for a major project in Graz were shattered
In its bankruptcy filing, Bau & Boden Immobiliengesellschaft mbH cites the real estate crisis that arose in the second half of the previous year as a result of the changed credit financing guidelines and the sharp rise in construction costs as the reason for the bankruptcy. Project companies ran into payment problems, as a result of which the company from Linz could not be paid in accordance with the contract. A major project in Graz, which could have generated a seven-figure fee, never got off the ground.
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.
