Eitek Austrian Auto Parts Supplier Scandal: Between Bankruptcy and Billion-Dollar Fraud
Eitek GmbH, a long-established company based in Lower Austria, is currently facing significant financial challenges. While restructuring proceedings involving the automotive supplier are underway at the Korneuburg Regional Court, a criminal indictment against owner Patrick James in the United States is causing further uncertainty. Approximately 280 jobs at the Ebergassing site are directly affected by the proceedings.
The Robert F. Kennedy Building serves as the headquarters for the U.S. Department of Justice. / Picture: © Wikimedia Commons/ ajay_suresh / CC BY 2.0 (https://creativecommons.org/licenses/by/2.0/deed.en)
Eitek GmbH, a company specializing in textile interior trim for the automotive industry, filed for self-administered restructuring proceedings in mid-January 2026. According to the Kreditschutzverband von 1870 (KSV1870), the company’s liabilities amount to approximately 36 million euros. In the event of liquidation, these liabilities could rise to as much as 109 million euros due to claims for damages.
Creditors are currently being offered a restructuring plan quota of 30 percent, payable within two years. The main reasons cited for the financial difficulties are the general decline in demand in the automotive industry, increased production and energy costs, and steadily declining revenue in recent fiscal years.
U.S. Indictment Against Owner Patrick James
The restructuring is being complicated by criminal investigations against the owner. Patrick James, whose company Neptune Industries had only acquired Eitek in the summer of 2025, was indicted in the U.S. at the end of January 2026.
The U.S. Attorney’s Office for the Southern District of New York accuses James and his brother Edward of a multi-billion-dollar fraud. According to the indictment, the global corporate network First Brands Group is alleged to have operated through manipulated financial statements, falsified invoices, and the multiple pledging of collateral. At the time of First Brands’ bankruptcy in September 2025, liabilities of over $9 billion were offset by cash reserves of only $12 million.
Impact on the Ebergassing location
The criminal charges against the group’s leadership have a direct impact on the operational restructuring in Lower Austria. According to credit protection experts, potential new customers and business partners lack the necessary confidence in the ownership structure.
In addition, there were irregularities in management. A managing director appointed for a short period had a relevant prior conviction for attempted fraud. There is suspicion that the owner’s private legal fees were to be billed through the company. Despite these circumstances, the restructuring administrators are currently maintaining self-administration, as the submitted financial plan has been adhered to thus far.
Personnel Consequences and Outlook
The tense situation has already led to initial staff cuts, as reported by ORF. At the beginning of March, 45 employees were registered for termination with the AMS. The GPA and PRO-GE unions emphasize the importance of the location and are calling for the acquisition of new orders to secure the remaining jobs in the long term.
A decision on the approval of the restructuring plan—and thus on the continuation of the 176-year-old company—is expected in mid-April. Patrick James rejects the allegations made against him in the U.S.; the proceedings there are continuing in parallel with the Austrian insolvency proceedings.