Austria: Brewery Grieskirchen Granted Approval for Continued Operation Amid Insolvency Proceedings

After initiating insolvency proceedings without self-administration in early March, the over 300-year-old Upper Austrian Brewery Grieskirchen received approval for its continued operation from the Korneuburg District Court on April 18th. The court expressed confidence in the company's prospects for ongoing viability.

By reducing its workforce by over a third, the brewery managed to significantly cut its fixed costs. Owner Marcus Mautner Markhof confirmed that the number of employees has dropped from 39 to 24.

At present, 161 creditors have submitted claims totaling EUR 3.9 million, with EUR 3.2 million being acknowledged by the insolvency administrator. Already at the outset of the restructuring proceedings in early March, the company offered creditors a quota of 20%, to be repaid within 2 years from the company's ongoing revenues. The creditors will vote on this restructuring plan at the Korneuburg District Court on June 6, 2024.

The brewery had previously undergone restructuring in the pandemic year of 2020, successfully concluding a plan with creditors that offered a 30% quota, as per their own reports. However, subsequent sharp increases in energy and production costs have presented significant challenges to the energy-intensive operation. Additionally, rising personnel costs are reportedly straining the debtor's liquidity.

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