Hotel chain Star Inn also files for bankruptcy in Austria: day ticket
The insolvency of the Star Inn Hotelbetriebs GmbH has been opened, as the Vienna Commercial Court announced on Monday. The causes of insolvency lie in the effects of the Covid-19 pandemic. A continuation of the operation is planned. In Germany, a Star Inn company filed for bankruptcy some time ago. (Daily ticket reported)
The company had applied for a reorganization process without self-administration, the credit protection associations Creditreform and AKV had announced shortly before. “The causes of insolvency lie in the effects of the Covid 19 pandemic,” explained Creditreform Managing Director Gerhard Weinhofer. According to the information, 101 employees and employees as well as 64 creditors are affected by the over-indebtedness.
Founded in 2006, the company operates eight hotels in Vienna, Graz, Salzburg and Linz. The hotels are located in city centers, as explained by the Alpine Association of Creditors (AKV).
According to Creditreform, assets of around 7.8 million euros are offset by liabilities of around 43 million euros. According to the documents submitted so far, the AKV reports debts of EUR 15,451 million. The company is to be continued and its debts eliminated via a restructuring plan. Creditors are being offered a 20 percent quota, payable within two years of acceptance of the restructuring plan.
“[…] Unfortunately, the renovation after two hard Corona years is now the only way to secure the future of the hotels together with an investor,” says Kathrin Garai, Managing Director of Star Inn.
All hotels are to be continued by a strategic investor from the hospitality sector, with whom negotiations have been ongoing for some time. The further development of the concept with extensive investments at the locations is also planned.
According to the company, hotel operations are not affected by the renovation. All hotels will continue to operate regularly and are available to guests. Nothing should change for the employees either.