Fewer bankruptcies in the state of Salzburg in 2021
161 companies in the state of Salzburg slid into bankruptcy in 2021. That is 26 cases fewer than in the previous year. In the 1970s, one has to look back in KSV1870’s long-term insolvency statistics to find a similar low number. The major insolvencies in 2021 were the Palfinger estate and Salzburg Schokolade GmbH.
Less bankruptcy proceedings
A total of 161 proceedings were pending in the federal state of Salzburg. 112 proceedings were opened by the court, 95 of which were bankruptcy proceedings and 17 were restructuring proceedings. The proceedings that have not been opened due to a lack of cost-covering assets amount to 49 bankruptcy applications in the state of Salzburg and, as a logical consequence, there has been a decrease in bankruptcy rejections, “said Aliki Bellou from KSV1870.
285 personal bankruptcies were opened in the Salzburg district courts in 2021. That means a decrease of 24 percent compared to the same period last year with 375 cases. The federal state of Salzburg is therefore well behind the Austria-wide trend, which even recorded a slight increase of 0.4 percent. The reported liabilities drop from 63 million euros to 33 million euros, which means a decrease of around 50 percent.
Forecast 2022
The state-initiated “safety car phase” gave companies the opportunity to defer the repayment of their debts.
This protective shield was terminated at the end of September 2021. The current material at hand is indicated that it is slowly but surely reaching pre-crisis levels. The trend reversal has been initiated.
“The regulatory corrective of the bankruptcy code WILL begin to take effect again, so that companies ready for bankruptcy can be restructured or taken off the market by opening bankruptcy proceedings,” said Aliki Bellou.
The situation in Austria
Throughout Austria, KSV1870 has set an unchanged level compared to the previous year (plus of 0.5 percent) for corporate insolvencies. The number of insolvencies in eastern Austria is already clearly moving towards the pre-crisis level. Vienna, for example, recorded the highest increase of 14.1 percent with 1,227 insolvencies. In the federal state ranking, Salzburg ranks fifth with 161 company bankruptcies, behind Upper Austria (262 company bankruptcies), Styria (361) and Lower Austria (586). The federal state of Salzburg is thus in line with the Austria-wide trend.
Personal bankruptcy forecast 2022
Debt settlement procedures that were opened were regularly justified with a reduction in income due to job loss, consumer debts and now with the short-time work that had occurred.
The assumption that the insolvency amendment implemented since July 2021, which provides for a reduction in the debt relief period from five to three years, will result in an increase in the number of cases, has not yet materialized. In the federal state of Salzburg it is the other way round.
“Deferrals, short-time work, job losses, but also postponing the regulation of debts are not a moderate reason to act in the interest of the creditors in good time,” said Aliki Bellou.