One of the largest construction concerns of Germany, Philip Holtzman, threatens the dismemberment and liquidation of LLC in parts. According to the economic weekly Virtsattsvoha, the head of the construction giant Konrad Khinrichs has been conducting unsuccessful negotiations with banks on the delay of the payment of the payment received from them in the amount of one billion euros for several weeks. In principle, this debt should be repaid until the end of November, but Holtzman does not have the opportunity to do this now. Khinrichs’s proposal to pay off the creditors mainly “greyhounds”, that is, real estate owned by the concern, was rejected by banks.
Monetary institutions refused to recognize the assessment of the value of objects of 850 million euros proposed by the concern and offered their own – only 400 million. Therefore, in relations between the parties, the Antarctic cold now reigns. In addition, Kholtsman cannot resist the requirements of banks, because they own 64 percent of its shares.
Under the threat of a breakdown was generally all the Kholtzman lending program adopted after long discussions. On November 24, last year, banks agreed to allocate new loans to the concern only if the European Commission (the executive body of the European Union) will approve state subsidies in the amount of 250 million euros, which the head of the German government, Chancellor Gerhard Schreder, promised to allocate to Holtzman.
However, the EU experts are in no hurry to make a decision and only now intend to begin consideration of this sensitive issue. According to observers, the verdict of the European Commission should not be expected earlier than May next year.
However, by that time, the leadership of the concern will already have to report to shareholders and creditors about whether he managed to fulfill this promise this last year: to bring Holtsman to the level of self -sufficiency at least in the field of operational activities of the concern. Leading banks already seriously doubt the fulfillment of this promise, since improving the situation in German construction in the coming months is not expected.