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Baumann Dekor Enters Bankruptcy Proceedings a Second Time

September 21, 2018

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GMÜND, AUSTRIA—Global competition and the high cost structure of Baumann Dekor GmbH was cited as the cause of its insolvency, according to its management. Baumann Dekor has now entered insolvency a second time since 2011. Only 34 employees are affected, but there are about 170 creditors.

Continuity of the business is scheduled. “The manufacturing of high quality fabrics in Gmünd should be continued,” Kreditschutzverband von 1870 reported. KSV1870 is Austria’s largest association for the protection of creditors. In cases of bankruptcy it protects the interests of over 23,000 members. On Monday, September 17, the Landesgericht in Krems, Austria, opened an insolvency procedure for Baumann Dekor, as stated by KSV1870, and the Creditreform has been published.

In the case of Baumann Dekor, there are assets of €400,000 against liabilities of €2.6 million. Baumann is offering a restructuring plan rate of 20 percent, payable two years after the acceptance of the restructuring plan to all unsecured creditors. The KSV1870 stated this only presents the lowest legal minimum offer.

Already six months ago, the director of the local chamber of work, Michael Preissl, published his concern in the local NÖN paper about Baumann Dekor. “There is just missing cash,“ he said. As a result, the local credit chamber did not object to the announced layoffs of employees which followed. Now the company couldn't meet its salary liabilities anymore as of this past July.

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