Aluminium packaging company Conseal GmbH files for bankruptcy and requests reorganization

Austria based aluminium packaging manufacturing company Conseal GmbH has filed for bankruptcy. The company has requested for reorganization procedure without self-administration in the Graz Civil Enforcement Tribunal. The company has also announced that they are looking for an investor to pull them out from insolvency.

The Styrian packaging company has an outstanding loan of approximately 5.24 million euro and now in the search for an investor. Conseal GmbH produces foil packaging made of aluminium and composite materials and supply to the pharmaceutical and food industry. The insolvency will lead to about 60 job losses and around 80 creditors. The company has liabilities worth approximately EUR 6.62 million and owns EUR 1.38 million in assets. The creditor is offered a quota of 20 per cent, payable within 24 months from the date of adoption of the restructuring plan.

A few weeks ago, aluminium packaging film manufacturer Alufix filed for bankruptcy in Lower Austria and filed a petition for a restructuring process without self-administration.  The company wants to continue with the operations with assistance till the time they find an investor.

According to the creditors, the company had been making losses from its operating businesses and was running with subsidies from shareholders to cover the losses. The sales figures were far behind the planned targets. The company did not see profits for long and was not in a position to bear the costs.

The company has attributed some of its losses to the fluctuating prices of aluminium which saw some steep hike in 2018. The company said that it was not possible to pass on the extra costs completely to the consumers leading to a continuous drop in margins.