Süba AG in trouble: restructuring proceedings applied for due to real estate crisis!

Süba AG in trouble: restructuring proceedings applied for due to real estate crisis!

The real estate company Süba AG filed for insolvency on June 7, 2025, which illustrates the effects of current market developments. The application was submitted without self-administration after the company got into serious financial difficulties. Loud the standard Süba AG's liabilities have totaled around 226 million euros and the company is faced with 95 creditors.

The reasons for this precarious situation are diverse. Süba AG attributes the imbalance to a “toxic environment” on the real estate market, which is characterized by increases in interest rates and higher construction costs. These factors put a significant strain on the company's business model, so that restructuring seemed inevitable.

Insolvency proceedings and their framework conditions

The insolvency proceedings are carried out in accordance with the provisions of Austrian insolvency law. An application for insolvency must be submitted to the relevant regional court within 60 days of insolvency or excessive indebtedness. In this procedure, a restructuring plan can be applied for that offers creditors a quota of at least 20% within two years, as shown on wko.at is explained.

In the case of Süba AG, this means that a procedure must first be initiated to examine the claims and the company's financial situation. If there are no assets to cover the costs, the court could reject the application, which would jeopardize the company's business licenses.

Impact and possible scenarios

With the opening of insolvency proceedings, the power of disposal over the insolvency estate is transferred to an insolvency administrator, which also includes an order for execution and litigation. A creditors' meeting is called to examine the claims and, if necessary, appoint a creditors' committee.

If the restructuring plan is confirmed, the insolvency proceedings could be lifted. The debtor would then have his ability to dispose of the property back, while remaining debts become statute-barred. However, if the restructuring plan fails, bankruptcy proceedings will be initiated and the insolvency estate will be realized by the insolvency administrator.

The situation of Süba AG shows the challenges that companies have to face in the current economic situation. The coming weeks will be crucial to show whether restructuring is possible or whether the company will have to enter bankruptcy proceedings.