Holzmann filed for bankruptcy on Tuesday this week after its 20 banks failed to back its restructuring plan. However, Holzmann could still avoid bankruptcy if Schröder can to convince the banks to change their minds. Schröder is also considering issuing a government guarantee to help cover the group’s debts.
The jobs of 28 000 Holzmann staff and 40 000 subcontractors are at risk and the story is front-page news in all the German newspapers.
In a further development, analysts were speculating that a potential bidder could be found for the company after it emerged that Singapore construction company SembCorp Industries had held talks with the Holzmann board on Tuesday evening. Among other names that have been linked with Holzmann are Germany’s largest contractor Hochtief, which tried and failed to buy the firm last year. However, a Hochtief spokesperson said it had no interest in buying Holzmann or any part of it.
One construction analyst has warned that the Holzmann crisis could affect the UK. He said the UK materials companies that supply Holzmann will need to make provisions in their year-end accounts for possible loss of payment if the German contractor goes under.
- Morrison Construction raised pre-tax profit 11% to £8.4m for the six months to 30 September 1999. Turnover was up 12% to £219m.
