65 employees tremble

18 million euros in debt: Recycling company goes bankrupt

The recycling industry is also feeling the effects of the difficult market environment.(Bild: FRIMU EUGEN)

Another local company has been hit: until September, the wages and salaries for the 65 employees could still be paid, but since Friday, the financial problems of bage plastics GmbH from St. Marien near Neuhofen (Upper Austria) have been a case for the insolvency administrator. 

bage plastics GmbH, which has three sites: two in Upper Austria, specifically in St. Marien bei Neuhofen and in Wolfern, and one in Germany, in Großschirma, promises customized solutions at the highest level.

Financial difficulties
What does the company do? It produces and sells recycled plastics from used electrical appliances, in particular refrigerators. Customers of bage plastics then use the recycled plastic to produce new products, primarily parts for electrical appliances.

However, due to the global recession, prices for recyclates have fallen massively and production can no longer cover costs, resulting in financial difficulties that have now led to the company filing for insolvency.

Restructuring proceedings have been initiated against the company. According to Creditreform, the liabilities amount to around 18 million euros. According to Creditreform, 65 employees are affected and are fearing for their jobs.

Shareholder supports continuation with millions
The company is currently aiming to restructure and wants to offer creditors a 20 percent quota. In order to continue operations, 1.5 million euros are apparently required. Shareholder Keks Invest GmbH intends to finance this amount.