The wages and salaries of the 65 employees could still be paid until September and since Friday the financial problems of bage plastics GmbH from St. Marien near Neuhofen (Upper Austria) have been a matter for the curator. A reorganization procedure was opened for the company. According to Creditreform, the debts amount to around 18 million euros.
Bage plastics GmbH, which has three locations, promises customized solutions at the highest level: two in Upper Austria, namely in St. Marien near Neuhofen and in Wolfern, and one in Germany, namely in Groß Schirma.
What does the company do? Recycled plastics from used electrical appliances, especially refrigerators, are produced and sold. Bage Plastics customers then use the recycled plastic to produce new goods, especially parts for electrical appliances.
However, as prices for recyclates have fallen dramatically due to the global recession and production can no longer cover costs, financial problems have arisen, which has now led to the company filing for bankruptcy. According to Creditreform, 65 employees have been affected and are concerned about their jobs. According to information from Creditreform, the debts amount to 18 million euros.
Shareholder supports continuation with millions
As of now, they have their sights set on restructuring and want to offer creditors a 20 percent quota. Apparently 1.5 million euros is needed to continue the activities. The shareholder, Küchen Invest GmbH, apparently wants to take over the financing of this amount.
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.
