On February 27, at the regional court Landesgericht Graz, bankruptcy proceedings were opened about the assets of CVR Spedition und Lagerlogistik GmbH, Transporte Cvörnjek Gesellschaft m.b.H., LGL Logistik GmbH & Co KG, and LGL Logistik GmbH, all located in Semriach. The liabilities of the four insolvent companies total around EUR 14.5 million. The insolvencies affect around 1,840 creditors and 63 employees.
The applicants are not considering to continue their business and agree on a closure of the companies, which is to be filed by the insolvency administrators. Only for Transporte Cvörnjek GmbH (shuttle service with 4 vehicles and 5 employees), a provisional continuation of the operational activity is considered together with the insolvency administrator.
As the Austrian association for the protection of creditors KSV1870 learned, in 2007 the CVR Group acquired a company property in Leoben as well as movable property and contractual relationships of a company, which shortly afterwards was insolvent itself. Assumed liabilities led to an economic burden on the CVR Group, which could never be completely satisfied by the companies themselves. This resulted in sales declines and bad debts.
“The company also experienced a high employee turnover, which resulted in a shortage of staff. In the branch of the debtors there is a fierce price competition, necessary price increases were not accepted by the market. Restructuring measures were initiated, but did not show the hoped-for effects. Liquidity bottlenecks were the result and led to the current insolvency, since even by the financing bank no further frameworks were granted,” reads a press release by the KSV 1870.
CVR Spedition und Lagerlogistik GmbH has been growing in line with the paper industry in recent decades and developed new markets. On the market this company has acted as the operational “head” of the CVR Group and negotiated contracts with customers, sub-contractors and other business partners. Transporte Cvörnjek GmbH and LGL Logistik GmbH provided the European transport and forwarding services.