The Austrian construction group of Spanish conglomerate FCC has recently sought bankruptcy protection as Alpine Bau had declared its insolvency. The financial decision was confirmed by a spokesperson for the company's parent group, Alpine Holding.

According to the spokesman, "The application was filed. It applies in the first instance for Alpine Bau."

The current staff complement of Alpine is around 15,000. It said last Tuesday that the reason for such filing was its failure to forge a deal with its creditors as to the reorganization of its outstanding debt.

A statement issued by Alpine said it was not possible to restructure internally 'despite significant support from financing banks and intensive efforts of the owner.' It added that should a viable reorganization plan be devised, then the same would be reviewed and implemented by administrators that would be appointed by the bankruptcy court. 

This is considered as the largest insolvency case in Austrian history. According to the credit protection association KSV, Alpine Bau had Eur2.56 billion in both equity and liabilities. In a statement from KSV, "The efforts of the debtor to restructure its liabilities out of court have failed. An additional funding of over Eur400 million would have been needed to avoid insolvency."