Electrical contractor Elektro Kager enters insolvency, affecting 66 workers

Elektro Kager GesmbH, an electrical installation company based in Schützen am Gebirge, has entered insolvency proceedings, ORF reported Friday. The case affects 66 employees.

The Regional Court in Eisenstadt opened restructuring proceedings without self-administration. The company’s liabilities total about 850,000 euros, according to information provided by the debtors.

Elektro Kager attributed its insolvency to difficult economic conditions and their effects on the construction industry. It said geopolitical conflicts, the energy crisis, resulting price increases and persistent inflation had significantly raised operating costs.

The company is expected to continue operating while restructuring through the closure of some business units, the KSV1870 said. Elektro Kager has offered creditors a restructuring quota of 20 percent, payable within two years of acceptance.

KSV1870 representative Stojanovic Nemanja said the offer was an initial formal proposal and that its adequacy and feasibility still needed to be assessed.