Operator insolvent

Multi-million bankruptcy also affects Linz medical center

(Bild: Markus Wenzel)

Today, Monday, the insolvency court opened restructuring proceedings without self-administration for M'Management GmbH, based in Innsbruck. The insolvency debtor operates four medical centers and currently employs 18 people. One of the centers is located on Donaulände in Linz.

The insolvency debtor operates four medical centers, whereby not only business space is rented or sublet to doctors, but the insolvency debtor also provides additional services (IT support, practice support or organizational support). According to the information in this application to open insolvency proceedings, the market situation has changed to such an extent that it is no longer possible to operate profitably due to rising costs.

Search for investors failed
It was not possible for the insolvency debtor to react to the changed circumstances on the market in the short term, as it was or still is tied to long-term - now massively disadvantageous - contracts. In addition, the sole shareholder announced at the beginning of 2024 that there would be no more subsidies. The reason for the debtor's lack of further support from its owner is likely to be the negative economic development of the companies in the Signa environment. As further explained in the insolvency application, attempts to find an investor ultimately failed.

Liabilities in the millions
The insolvency debtor assumes liabilities of around 2.4 million euros. Should the company be closed down, the insolvency debtor fears that liabilities will increase to around 7.5 million euros. This is because the company would be faced with enormous claims for damages in the event of liquidation. The liabilities shown include loans from affiliated companies. The extent to which such loans will play a role in the insolvency proceedings requires detailed examination by the insolvency administration. 

Restructuring planned
The insolvency debtor is planning to restructure its business. As part of the current restructuring plan proposal, creditors are being offered the statutory minimum quota of 20 percent. KSV1870 will examine the attractiveness of this offer in detail. In particular, the question of the possibility of financing the quota will also play a central role in KSV1870's considerations.

Examination of whether continuation is possible at all
Klaus Schaller, Head of Region West at KSV1870, explains: "The insolvency administration must now primarily examine whether it is at all possible to continue the business as part of the insolvency proceedings without disadvantages for the creditors. The application to open insolvency proceedings mentions planned restructuring measures. It remains to be seen whether the management, together with the insolvency administrator, will be able to improve the operating results in the short term in such a way that a surplus can be achieved for the insolvency estate - also taking into account the costs of the insolvency administrator. Only in this case is it realistic that any resumed talks with interested investors in the course of the restructuring process will be crowned with success."