Bankruptcy of millions surrounding a well-known castle in Lower Austria

“What began as a classic real estate sale turned into an economic drama. The debtor, whose business model is based on the management and leasing of real estate, got into trouble due to a disastrous domino effect. The primary source of income – the marketing of Leopoldsdorf Castle – collapsed when two prominent tenants slid into bankruptcy,” shares Credit reform with. “Eyemaxx International Holding & Consulting GmbH and VST Building Technologies AG had their office space in the castle. After their bankruptcies, the appointed liquidators terminated the rental agreements as part of the liquidation. This was a fatal blow for Lifestyle Realimmobilien: the urgently needed liquidity to cover the high maintenance costs of the historic building suddenly dried up.”

On Friday, the Korneuburg regional court initiated restructuring proceedings with self-administration of the assets of the company Lifestyle Real Property Utilization Society mbH & Co KG opened. That confirms Günther Moser von Credit reform the COURIER. At the center of the bankruptcy is a historical jewel: Leopoldsdorf Castle near Vienna

Specialization becomes fatal

The search for new tenants turned out to be more difficult than expected. The reason: The office space had been specially adapted to the needs of the previous tenants – an investment that now turned out to be a boomerang. All attempts to re-let the property failed.

Given the high liabilities, there was only one way out: selling the castle. This strategy was agreed upon in consultation with the mortgage creditors. But here too, external factors thwarted the plan.

International buyers hesitate

There were certainly interested parties – primarily from third countries. But the global crises of recent years have left their mark: an agreement on the purchase price has not yet been reached. There was ultimately no alternative to filing for bankruptcy.

30 percent quota planned

23 creditors are affected by the bankruptcy. The total liabilities amount to 12.9 million euros. However, the majority of it is secured by mortgages. According to the debtor’s representative’s assessment, only around 366,000 euros are relevant to the quota for a restructuring plan.

The unsecured creditors should be offered a quota of 30 percent. Attorney Michael Ludwig-Lang was appointed as insolvency administrator.

The goal remains: the sale of Leopoldsdorf Castle at the best possible conditions. Negotiations with potential buyers are continuing. It remains to be seen whether the historic property will find a new owner to secure its future.