Restructuring planned

Broke! Construction crisis causes window company to stumble

High costs, strict financing guidelines: The construction engine has stuttered.(Bild: Karl Schöndorfer TOPPRESS)

The stuttering construction engine is bringing more and more companies to the brink of the economic abyss - and has claimed the next victim of bankruptcy in Upper Austria. On Tuesday, a window manufacturer filed for reorganization. Debt amount: around 7.9 million euros according to KSV 1870!

Declining capacity utilization in the construction industry, rising costs, increased competition from suppliers from Poland and south-eastern Europe - IPM Schober Fenster Gesellschaft m.b.H., which filed for restructuring on Tuesday, cites all of these as reasons for its financial difficulties.

According to Kreditschutzverband 1870, the company based in Thalheim bei Wels (Upper Austria) has liabilities amounting to 7.897 million euros. This contrasts with assets of 1.45 million euros.

35 jobs in jeopardy
The creditors are being offered a restructuring plan that provides for a 20 percent quota. The company is to continue as a going concern and the quota is to be generated from the continuation of the business. According to company lawyer Wilhelm Deutschmann, this will not be possible without job cuts: Of the current 90 employees, 35 will probably have to go.