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Construction Company “Alpine Bau” Insolvent

4. July 2013

Biggest Bankruptcy in Austria

Alpine Bau GmbH, Austria's second-biggest construction company, filed for insolvency with liabilities of up to 2,6 billion euro and assets of 661 million. This could become the country's biggest corporate collapse since World War Two. Alpine Bau employs about 7.000 people in Austria and 1.900 in Germany. Alpine made a pre-tax loss of 90 million euro in the first quarter, as the long winter delayed the building season and business decreased in Central, Eastern and South-Eastern Europe, as well as in Germany.

The subsidiary of Spanish builder FCC has been grappling with an expansion into Eastern European and Asian markets, which has proven unprofitable. There were some bright spots in the otherwise gloomy news for Alpine, which built Munich's Allianz Arena stadium, three stadiums for the 2012 European Football Championships in Poland and the Tsankov Kamak hydropower plant in Bulgaria.

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