M-T-T Maschinentechnik Filed Its Own Application for The Commencement of Rescue Proceeding

On 18 April 2013, the Austrian sawmill-equipment supplier M-T-T Maschinentechnik filed its own application for the commencement of rescue proceedings at the Klagenfurt district court. In addition to declines in order receipts totalling roughly €400,000 in the last financial year, legal action taken against the company in 2006 based on defects resulted in claims totalling €300,000. In addition, recent weeks have seen payment defaults amounting to €300,000 resulting from invoices for contract work which could not be collected. According to the Kreditschutzverband von 1870 (credit protection association) in Vienna, Austria, total debts have therefore reached roughly €1.7m, contrasted by assets of only roughly €700,000. A work force of 19 is affected by the rescue proceedings, but the rescue plan envisages continuation of business by the company. The debts are to be serviced with a dividend of 30% within a period of two years. The rescue proceedings will be carried out under own administration, whereby the lawyer Dr. Hannes Hammerschmidt from Spittal an der Drau has been appointed to provide assistance to the company.