Lex Benko: SPÖ calls for tougher insolvency law

Legislative changes are aimed at preventing profitable businesses with insolvency

SPÖ identifies loopholes in insolvency law. SPÖ announced that this should be closed in order to prevent transactions such as the sale of Kika/Leiner by investor Rene Benko. Until now, billionaire individuals could enrich themselves at the expense of the common people. In the end, employees and taxpayers are idiots, ”said SPÖ Vice President Julia Herr in the newspaper.

According to this, the group insolvency law should prevent the good parts of the company from being sidetracked in the event of a takeover, while the bad parts are “disposed of – i.e. a loss – and thus people are put on the street,” the SPÖ further declared.

According to another proposal, the creditors’ claims should be converted into shares in the company. So the owners and creditors will have a common interest in helping the company survive. SPÖ points to the USA and Germany as role models.

As in the Netherlands, tax money must be paid first, according to another proposed amendment. In order to examine and handle major insolvencies, the SPÖ requires its own authority with appropriate resources.

The fifth point of this plan contemplates extending the liability of the divided companies: accordingly, the divided companies will also be mutually liable for the damage caused by the division. So far, the board members and board members are responsible for it. But with a similar change in the law, the division of operational and real estate businesses, as with Kika / Leiner, would be less attractive, SPÖ is convinced.