Legislative changes aim to prevent profitable businesses with insolvencies
The SPÖ finds loopholes in insolvency law. The SPÖ announced that this should be closed to avoid transactions such as the sale of Kika/Leiner by investor Rene Benko. “Until now, individual billionaires have been able to get rich at the expense of the general public. In the end, the employees and the taxpayers are the stupid ones, ”the vice-president of the SPÖ club, Julia Herr, told the newspaper.
According to this, the law of collective insolvency should prevent the good parts of the company from being alienated in case of acquisition, while the bad parts – that is, loss-making – are “thrown away and, thus, also put people on the street”, the SPÖ announced yet.
According to another proposal, creditors’ credits should be converted into company shares. Owners and creditors would therefore have a common interest in helping the company survive. The SPÖ refers to the USA and Germany as models.
As in the Netherlands, tax money would have to be refunded first, according to another proposed amendment. And to examine and prosecute major insolvencies, the SPÖ requires its own authority with the appropriate resources.
The fifth point of this plan provides for the extent of liability of the divided companies: Thus, the divided companies would also be mutually liable for damages caused by the division. Until now, managing directors and board members have been responsible for this. But with a corresponding change in law, the division of operating businesses and real estate businesses, as with Kika/Leiner, would be less attractive, the SPÖ is convinced.