As of: March 7, 2024, 4:16 p.m
By: Amy Walker
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The construction industry is under massive pressure, increased costs and interest rates are causing demand to plummet.
An explosive bankruptcy in Lower Saxony is making people sit up and take notice.
Hanover - The construction industry is currently going haywire, and it has also become the victim of a political dispute: the relief promised by the traffic light coalition is being blocked by the Union in the Federal Council.
The next opportunity for an agreement is March 22nd, when the industry is hoping for an impulse that will stimulate growth again.
Insolvency of Helma Wohnungsbau AG
But many companies cannot wait that long.
Helma Hausebau AG, which filed for bankruptcy on Monday (March 5), now also joins this series.
The company has filed proceedings for insolvency at the Gifhorn district court.
On the same day, Helma Wohnungsbau AG replaced its CEO: Andrea Sander “has resigned as CEO and CEO for good cause and with immediate effect,” the company said in a statement.
Felix J. Krekel has been appointed sole director with immediate effect.
He had previously been a member of the supervisory board.
The lawyer Manuel Sack from Hanover, partner in the nationwide law firm Brinkmann & Partner, was appointed by the court as provisional insolvency administrator.
Helma Hausebau AG had to file for bankruptcy © IMAGO/Rainer Droese
“The first step I took was to get an overview of the previous investor discussions.
It is our goal to continue the restructuring measures that were initiated prior to filing for insolvency and thus ensure the continuation of the company.
Wages and salaries are secured by the insolvency money for the next three months,” said Sack in an initial statement.
The company employs 170 people.
Helma faced fraud allegations at the end of 2023
It is also possible that the builders of some Helma Wohnungsbau AG projects would now have to be contacted.
It was not known how many construction projects could now potentially be on hold.
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In addition, the company may have to face allegations of fraud.
In December 2023, the
Hannoverische Allgemeine Zeitung
reported that Helma AG could be faced with claims for damages amounting to millions, based on systematic construction defects.
According to the report, the public prosecutor's office is also examining a lawsuit.
The company denies the allegations: “The allegations made in this article do not stand up to scrutiny,” it said in a statement in December.
“The article is based on clearly false claims from a former service provider of the Helma Group, whom we terminated on November 4th, 2023.
We suspect that he is now trying to harm us as a company and unsettle our customers because of this termination.
We object to this approach and will take legal action against it,” the statement continued.
Either way, the bankruptcy is unlikely to make the company's situation any better.
Whether a renovation will be successful depends largely on the construction situation.
And that's waiting for politics.