Insolvency chaos in Cologne: Phoenix Engineering is facing claims worth millions!

Insolvency chaos in Cologne: Phoenix Engineering is facing claims worth millions!

The situation at Phoenix Engineering GmbH in Cologne has worsened dramatically. How t online reports, the company has filed for bankruptcy, leaving many subcontractors facing a huge financial dilemma. Unpaid invoices are the main reason for the serious problems and the magnitude of outstanding payments is alarming.

The numbers don't lie: Over 2.6 million euros in payments are said to be outstanding across Germany, including more than 350,000 euros that have not been paid to construction companies in Rhineland-Palatinate alone. This affects numerous subcontractors who are urgently waiting for their money. In a particularly critical case, a gardening and landscaping company in the Ems region has claims of around 200,000 euros against Phoenix Engineering calf reported.

**Continuation of business operations**

The Cologne District Court has appointed a provisional insolvency administrator to stabilize the company's business for the time being. Dr. Jörg Gollnick was entrusted with this responsible task. According to the insolvency administrator, the directly affected employees should initially receive insolvency money, while the subcontractors' claims will only be examined after the insolvency proceedings have been officially opened. Fortunately, the office in Cologne remains open and no one has to worry about their roof over their heads due to the serious situation. The insolvency administrator gives the all-clear: reports of empty offices and management going into hiding are not accurate.

**Disaster for subcontractors**

The situation for many subcontractors, however, is catastrophic. Financial uncertainty is weighing on sentiment. Managing director Murat Yaman says he has little hope of getting his money back. To illustrate the severity of the situation: All of the affected companies in the region have now filed criminal charges against Phoenix Engineering. Employees, including those from Romania and Greece, have been waiting for their wages for months and are now without rent payments.

But the salaries should not be completely lost - payment has already been ordered for 144 of 320 employees for August. The salaries for September will also be paid from insolvency money. The transfer of these funds is a ray of hope in a dark tunnel for those affected.

**Causes of bankruptcy**

The reasons for bankruptcy are varied. Rising interest rates, strict lending, lengthy approval processes and delayed certifications have plunged the company into an existential crisis. This is confirmed by the analysis of insolvency research, which also shows that large declines in employment often occur in the year before the insolvency IWH documented.

The time for decision has come for Phoenix Engineering GmbH. Discussions will be held in the coming weeks to stabilize and continue business operations. Investors are also a key point in these discussions. But whether this plan will succeed and what the future of the company looks like remains to be seen.