Sale of A-Tec Problematic

Published: November 2, 2011; 14:37 · (Vindobona)

The insolvent Austrian A-Tec corporation, which is currently being dissolved, faces several problems. The sale of the remaining subsidiaries Brixlegg and Emco could be delayed.

Sale of A-Tec Problematic / Picture: © A-Tec

The sale of the three remaining subsidiaries of A-Tec should be finished within the three coming months. This is the aim of A-Tec´s liquidator Matthias Schmidt. If this timeline can be met, is still not clear. Besides the copper manufacturer Brixlegg, the power plant Voitsberg and the tool machine manufacturer Emco are for sale.

By the end of October, the engineering company ATB has been sold to the Chinese Wolong group. ATB had sales of € 315m in 2010 and employed about 500 workers. After the deduction of reserves and liabilities, the sale will bring € 62m for the creditors.

Two weeks ago, the commercial court decided that Kovats has to “omit every kind of disturbance”. Via his private trust, Kovats still holds 6% in the ATB subsidiary ATB Nordham. Kovats claimed € 6m from Wolong. However, the fair value was € 1.5m. Observers regard this claim as an attempt to prevent the sale to the Chinese group. However, Kovats´ effort failed.

Brixlegg reached sales of € 1.0bn in 2010 and employed 1,000 workers. Emco has 480 workers and achieved sales of € 100m. For both of them, more than ten potential buyers are expected. According to an expert testimony, the fair value of Brixlegg is € 200m. However, this is only the case if the copper price recovers. For the liquidator Matthias Schmidt, this is major problem: observers expect a sale price ranging only between € 80m and € 100m.

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