Insolvency proceedings: Donaustädter company TGH is fighting for the future
Insolvency proceedings: Donaustädter company TGH is fighting for the future
In the Donaustadt city, the technical devices Holding (TGH) has filed for bankruptcy due to considerable financial difficulties. The company, which is based on Obachgasse, is known for wholesale and maintenance of gas heating systems and employs around 35 people. Despite the tense situation, the management plans to continue the company and applied for a renovation process at the commercial court.
The bankruptcy concerns a volume of 1.72 million euros, which underlines the company's financial challenges. So far, the company has hired its payments and the opening of the renovation process is imminent. This was explained by Peter Stromberger from KSV 1870, an organization that looks after bankruptcy cases in Eastern Austria.
background of bankruptcy
The causes of the economic difficulties are diverse. Significant increases in gas prices as well as delivery difficulties affect business and the development of sales significantly. In addition, many companies in the industry are fighting with the challenges of a hard market environment. Despite these adversities, there is hopes for sustainable renovation. According to KSV 1870, the shareholders are willing to provide private means to stabilize the financial situation.
As part of the renovation process, the 18 creditors were offered a repayment rate of 30 percent within two years, which, however, is only the first formal offer. The adequacy and realizability of this offer must now be checked in detail. The employees have received their wages up to and including October, which also makes the current situation complicated.
With the opening of the renovation process, the future of the TGH will now be decisive for everyone involved. The possibility of continuing the operation and at the same time reducing debts will be of enormous importance not only for employees, but also for the creditors. Further information about the situation of the company is in a Article on www.meinbezirk.at to read.