The German construction giant, the ninth largest contractor in Europe, faces insolvency unless a deal can be reached to write off its £130m debt and sell its lucrative technical services division.
Deutsche Bank, Holzmann's main shareholder, has come up with the plan but has so far failed to get other shareholders to go along with it. If no deal can be reached soon, Holzmann's 24,000 staff could be out of work.
The company's latest difficulties are reverberating at the highest levels in German politics and threaten to become an election issue. Chancellor Gerhard Schroder, who is seeking re-election later this year, brokered Holzmann's rescue package two years ago to avoid what would have been Germany's largest corporate failure. That cost £1.4bn but already another bale-out is needed. On Tuesday, Holzmann shares fell 24% to *4.95.