Mailberg Castle business files for insolvency

The business operating Mailberg Castle has filed for insolvency just months after opening, ORF reports. It plans to continue operating the castle as a hotel and events venue while seeking to restructure.

The company attributed its financial difficulties to high start-up and handover costs, unexpected cost increases, substantial construction and maintenance expenses, and the need to pre-finance operations while carrying high fixed costs. Seasonal fluctuations and lower-than-expected revenue also put pressure on its liquidity, according to the Alpine Creditors’ Association (AKV).

The company has applied to the Regional Court in Korneuburg for restructuring proceedings without debtor-in-possession status. The insolvency affects 78 creditors, with total claims of about 820,000 euros. The company employs 16 people.

The company intends to offer creditors a 20 per cent repayment, payable within two years of the restructuring plan’s legally binding approval. It is relying on continued hotel and events operations, existing bookings and events, and cost-cutting and restructuring measures. The insolvency proceedings have not yet been opened.

A new operator took over the castle about a year ago, aiming to establish it as a venue for events, accommodation and catering.