• austriantimes.at
• croatiantimes.com
• romaniantimes.at
• viennatimes.at

Today

• Vienna - Johnny\'s Pub Quiz
• Vienna - Unknown Underground
• Vienna - Childrens Fun
• Vienna - Palais Lichtenstein

22. 01. 13. - 18:00

• more Business news
• RSS Feed Business

22. 01. 13. - 18:00

Firm bankruptcy rising again

The number of insolvencies among firms has increased for the first time in two years rising by 50 per cent in Burgenalnd alone.

However there was a slight drop in the number of personal bankruptcies, according to figures released by the association of creditors Creditreform.

According to these figures, the number of corporate insolvencies went up 1.2 percent to 6,266 and the number of open cases has shot up 6,2 percent to 3,492. in 2,774 cases – minus 4,5 percent – the insolvency applications were rejected for lack of assets to cover the costs.

One in six cases were opened as reorganisation processes and offered the indebted company a second chance. The financial liabilities amounted to around three billion Euros. Some 22,000 jobs were affected.

Creditreform boss Rainer Kubicki said: "From a creditor's point of view, we have to welcome the drop in cases which are abandoned for lack of assets. The reason for this is a successful insolvency reform."

Insolvencies shot up in Burgenland (50.6 percent), Salzburg (6,1 percent) and in Carinthia (5,4 percent) the most. In Tirol (minus 3,7 percent), Vorarlberg (minus 3,3 percent) and Upper-Austria (minus 2,1 percent) the number of insolvencies fell.

Proportionally, there were the most cases in Vienna with 23 insolvencies for every 1,000 company. The Austrian average is 17 cases per 1,000 companies.

There was a clear recovery of personal bankruptcies last year, figures going back 2,9 percent to 10,545 cases. The number of judicial debt regulation procedure stagnated (9,508 cases), the number of cases abandoned for lack of assets went back 18,2 percent to only 1,037 cases.

In one in two cases, the reason for insolvency is a income-deterioration following redundancy or a period of leave. A good third of the insolvencies can be traced back to unsuccessful self-employed workers. The main creditors are banks, telecommunications firms and leasing companies. The average indebtedness lies at 70,000 Euros.

The national comparison shows that Vienna proportionally has twice as many cases of private insolvencies per habitant as the national average. More than 30 out of 10,000 Viennese adults were insolvent in 2012. Creditreform names joblessness as the reason for this.

These statistics are to be taken with a pinch of salt. Last December the creditors' protection association (Kreditschutzverband 1870) had also published their insolvency statistics – figures varying widely from that of the Creditreform.

For example, the Kreditschutzverband had spoken of an average indebtedness of 55,000 Euros for personal insolvencies – for the Creditreform, that's 70,000 Euros. Kreditschutzverband had counted 6,010 corporate insolvencies (Creditreform: 6,266) and 9,629 private cases (10,545). The Kreditschutzverband reckons there were 34 percent more corporate insolvencies in Burgenland last year – 50,6 percent for Creditreform.

Austrian Times

Baumgartner tax row
The tax proceedings of the extreme sportsman Felix Baumgartner are still underway. Mr Baumgartner told the Austria Press Agency that he asked the Independent Finance Senate (UFS) to resolve his case.

Record visitor numbers at Salzburg Whitsun Festival
The Whitsun Festival in Salzburg has set a new record of visitors and revenue. Cecilia Bartoli, a popular soloist and the artistic director of the festival, was particularly popular.

Football manager Adi Hütter charged with tax evasion
The manager of the football team SV Scholz Grödig (Salzburg state), which will be promoted the Austrian Premier League, will have to go to court this week. He is accused of tax evasion and of having cooperated with the architect Markus Voglreiter.

Experts recommend considering breast amputation well
Experts from Salzburg warn against the radical step of a breast amputation. The debate started last week, when Hollywood Star Angelina Jolie announced that she had her breasts removed out of fear of breast cancer.

Police raid dairy headquarters
A raid in the second largest Austrian dairy NÖM, which started on 15 May, was terminated yesterday (Thur) afternoon. Employees of the Federal Competition Authority (BWB) are still in the headquarters in Baden.

Austrian on trial over Aldi blackmail
The trial of a 61-year-old man from Salzburg, who blackmailed the company Aldi South, started yesterday (Wed) in Duisburg, Germany. The defendant has already admitted that he demanded 15 million Euros from the firm.

State secretary denies interfering over Baumgartner taxes
The extreme sportsman Felix Baumgartner stated that the Ministry of Finance spared him additional taxation by political intervention. The former Financial Secretary Reinhold Lopatka (ÖVP) denies these claims.

Search for trapped after Felbertauern rockfall
The Felbertauern road in Tyrol, Western Austria, has been closed completely after rock fall last night (Mon). Rock came down on the East Tyrol side just before 2 a.m. It completely destroyed an avalanche gallery.

Delunamagma creditors to lose most of their investment
The creditors of the technology firm Delunamagma Industries GmbH from Bludesch-Gais, Vorarlberg (Western Austria) will lose the majority of their money in the bankruptcy proceedings.

SPÖ Salzburg votes for new party leader
The current health and social state councillor Walter Steidl has been elected the new head of the Social democratic party of Salzburg yesterday (Mon).