Major bankruptcy for construction industry?

(ADW) The Luxembourg construction company Socimmo has been in financial trouble for several weeks now. The company's banks are demanding an additional guarantee of 600,000 euros, no more, no less.

If the 600,000 euros is not found rapidly, the company faces imminent bankruptcy, resulting in job losses amounting to 470 Socimmo employees.

Founded in 1968, the firm is situated at "Triangle vert” industrial zone at Ellingen near Mondorf.

Information from union sources stated that salaries for June have so far not been paid. Socimmo's customers however, are said to owe the company almost four million euros.

Radio DNR reported on Wednesday that the LCGB union has been in talks with government representatives for several weeks searching for ways to avoid bankruptcy, or at least reduce the consequences of bankruptcy for employees.

The talks ended on Wednesday afternoon without result.

According to calculations by the union, a bankrupt Socimmo would cost up to 10 million euros - significantly more than the 600,000 euros currently being demanded by credit banks as a guarantee.

On Wednesday afternoon, an information meeting was held for the employees and on Thursday morning a protest rally outside the Ministry of Economy is planned.