DrThe collapse of the investment company Cigna Holdings has dragged more and more companies into the abyss. Naturally, this affects parts of the complex business conglomerate owned by Tyrolean investor Rene Benko. After several bankruptcies, the bankruptcy of an IT company became known on Tuesday. A restructuring procedure without self-administration has been opened in the Vienna Commercial Court for Informationstechnologie GmbH, several credit protection associations have announced.
The debtor wants to continue the company and offers the 154 supposedly affected creditors to repay 20 percent of their debts within two years after acceptance. This is the minimum stake legally required for this type of action.
The continued operation of the debtor company is said to be of great importance to the entire Signa Group. “It can be assumed that the debtor’s services will be reduced in the course of the restructuring process without self-management,” says Jürgen Gebauer of Kreditschutzverband (KSV) von 1870. It is possible that the important real estate companies Prime and Development will file for bankruptcy. almost.
15 breakdowns per day
This is likely to lead to further bankruptcies between Bregenz and Eisenstadt. In early 2023, the number of applications increased by 13 percent compared to the previous year, the creditor protection institution KSV Since 1870 announced on Wednesday. 5,401 companies were affected. This equates to 15 collapses per day and a similar number of cases as ten years ago. Temporary debts were also said to have risen significantly, not least because of the bankruptcy of Cigna Holdings.
Specifically, according to estimates by the Credit Protection Association, temporary liabilities rose by 286 percent to about 8.53 billion euros. This development can be traced back to the largest corporate collapse in the history of the Austrian economy to date – the bankruptcy of Cigna Holding. There are about 5 billion euros of liabilities here. But even without Cigna Holdings, the level would be about half that of the previous year.
Bankruptcies are increasing
“This shows that insolvencies in Austria are no longer small in scale, but rather their number is increasing,” Karl-Heinz Götze, head of the insolvency department at KSV 1870, said at the development presentation in Vienna. Signa also plays a role in the number of employees affected – a 45 percent increase to 22,500. A large number of these cases are due to the bankruptcy of the Kika/Liner facility chain. The furniture retail chain filed for bankruptcy in the spring, shortly after it was sold by Signa.
For Götze, the current high number of insolvencies is not a cause for concern. Twenty years ago, the insolvency rate was about 2%, but today it is 1.2%, as he put it. “The negative thing is that we still have a very large number of unopened insolvency cases,” he added, expressing concern about an eight percent increase from the previous year to about 2,000 unopened claims. However, Götze considered the 16% increase in the number of insolvency cases open to 3,378 claims to be good news. However, creditor protectors’ forecasts that the number of insolvent companies in Austria is likely to continue to increase next year are less good.
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