An ambitious earthworks and recycling company goes bankrupt for millions

We’re talking about the Markus Kern & Co Erdbau Transport GmbH, based in 8472 Oberschwarza. She has filed an application with the Regional Court for Civil Law Matters in Graz to open a case Reorganization process without self-administration placed. The Austrian Association confirms this Credit reform the COURIER. 31 employees are affected by the bankruptcy.

Markus Kern & Co Erdbau Transport GmbH is a leading earthworks and recycling company in southern Styria and offers services in the areas of earthworks, transport, demolition and dismantling, including recycling of building materials.

The causes of bankruptcy

“Starting with the COVID-19 pandemic, there were structural changes in the construction industry, the interest burden increased and the approval process took longer. This resulted in project postponements or cancellations and generally lower construction activity. In addition, personnel and fuel and operating costs increased,” the company says.

Debts and assets

The debts are valued at 3.318 million euros and the assets at 483,000 euros.

The future

“In any case, the company should be continued,” says Creditreform. “There is an application for the adoption of a restructuring plan that provides for a quota of 20%, payable within two years. Its fulfillment should be financed from the continuation proceeds.”