Struggling Imtech files for court protection from creditors

Technical service company Imtech has applied for court protection from creditors after its failure to reach agreement with the banks on a new capital injection.

A court in Rotterdam has granted the request and appointed administrators to try to resolve the situation.

Imtech said on Monday it was considering ‘all options’ after failing to reach an agreement with financiers on additional funding. Specifically, the company said it was looking to ‘preserve as much of the group as possible’.

‘It is very disappointing that after all the efforts of all involved it has not proven possible to avoid this situation,’ chief executive Gerard Filing and supervisory board chairman Frans Cremers said in a joint statement.

‘Filing for suspension of payments now may optimise the chances that substantial parts of the Imtech Group may continue in the interest of all stakeholders and specifically our employees.’

Imtech has a global workforce of 22,000, of whom almost 3,000 are in the Netherlands.

Since the scale of the company’s problems became apparent two weeks ago, the share price has plunged 90% and is now worth just 42 cents.