Alpine Bau Marks Biggest Insolvency of Austria

Alpine Holding GmbH saw its attempts to increase fresh funds failing the previous day. A recent report has, therefore, been claiming that the Austrian builder run by Fomento de Construcciones & Contratas SA could see the biggest insolvency of the country since World War II.

The operating unit of the company has even filed for insolvency today at the commercial court of Vienna. The report found that the unit dubbed Alpine Bau has businesses in Germany, Austria and Eastern Europe.

Kreditschutzverband von 1870, credit protection association, said that the insolvency filing by Alpine Holding was expected to follow in the upcoming days.

Three bonds of the builder had been suspended from trading in Vienna. Since, they had shown failure the previous day to record lows.

KSV said that Alpine Bau had 2.56 billion euros in equity and liabilities. Alpine Bau is the second largest builder in Austria after Strabag (STR) SE. The report said that the 2010 insolvencies of industrial group A-Tec Industries AG (ATEC) were exceeded by it. Retail cooperative Konsum's insolvency in 1995 was also surpassed by it.

"The efforts of the debtor to restructure its liabilities out of court have failed. An additional funding of over 400 million euros would have been needed to avoid the insolvency", said KSV. It is the representative group of creditors in insolvency procedures.