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Mangen Constructions to file for bankruptcy
Economics

Mangen Constructions to file for bankruptcy

14.03.2012 From our online archive
Another construction firm is to file for bankruptcy in Luxembourg, leaving 225 workers on the dole.

Another construction firm is to file for bankruptcy in Luxembourg, leaving 225 workers on the dole.

According to workers' unions LCGB and OGBL, Steinfort-based Mangen Constructions SA is to begin bankruptcy proceedings next week because it is no longer able to honour its commitments to employees or suppliers.

The unions say that the company has spent several months in negotiations with the ministries of economy and employment to find an alternative solution.

A staff briefing is expected to be held next Tuesday with the unions at the LCGB headquarters in Luxembourg City to advise employees of the next steps.

The unions have asked the government to intervene to ensure that employees receive unpaid wages as soon as possible.

It is the third construction firm to file for bankruptcy in Luxembourg since June last year. In mid-June Esch-sur-Alzette-based firm Pedinotti & Cie filed for bankruptcy, costing the jobs of 105 construction workers. In July, Socimmo suffered the same fate, leaving 477 employees out of work.

During 2011, Luxembourg recorded 930 bankruptcies, a 30 per cent increase compared with 2009.