Creditors are expected to begin liquidating Austrian ski manufacturer Kneissl as soon as this week after its largest shareholder failed to meet a Wednesday deadline for investing $3 million in the bankrupt company, according to a report by Freidlnews.com.
Kneissl’s survival hinged on reputed billionaire Sheikh Mohamed Bin Issa Al Jaber fulfilling two conditions. First he had to transfer roughly $3 million to an escrow account managed by a liquidator overseeing Kneissl’s reorganization. Second he had to renegotiate an agreement with Bank Austria to delay enforcement of its $16.7 claim against the company.
Neither condition was met. Liquidation cannot proceed until a court certifies that Al Jaber failed to meet the deadlines. That ruling was expected as early as Friday.
Officials overseeing Kneissls reorganization have estimated creditors of Kneissl Holding GmbH could receive 30 cents on the dollar, while creditors of Kneissl Tirol GmbH, which makes skis, apparel and bicycles, could receive 25 cents. Creditors of Kneissl Star Lounge GmbH, which has retail and restaurant holdings, would get 100 cents on the dollar.
