Lower Austrian car supplier MGG Herzogenburg GmbH filed for non-self-administration restructuring proceedings at the St. Pölten Regional Court on Friday. According to a press release, the company, based in the St. Pölten district, currently employs around 200 people.
At the company’s request, no information about assets and liabilities was initially provided. The restructuring process is intended to achieve a restructuring and long-term survival of the company.
Faced with “reduced purchasing figures”
“The current sales crisis in the European automotive industry is now having a full impact on MGG’s order and sales development,” it was announced. It is said that the company faced “significantly reduced purchasing levels in the short term”.
The resulting decline in turnover cannot be compensated for by internal measures. Creditors are offered a restructuring plan that provides for a 20 percent quota.
Leading manufacturer of aluminum castings
According to its own information, MGG Herzogenburg is one of Europe’s leading manufacturers of aluminum castings for the automotive industry. This includes engine parts, chassis components such as axles and wheel carriers, brake calipers and battery housings.
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.
