Austria’s second-biggest construction company Alpine said on Tuesday that it would file for bankruptcy after banks did not agree to inject new cash into the ailing company.
The subsidiary of Spanish builder FCC has been grappling with an expansion into Eastern European and Asian markets, which has proven unprofitable.
The company’s 15,000 jobs are on the line. Its staff includes 7,500 in Austria and 1,900 in Germany.
Alpine said it wanted to continue operating and restructure while in receivership.
Alpine made a pre-tax loss of 90 million euros ($ 120 million) in the first quarter, as the long winter delayed the building season and business decreased in Central, Eastern and South-eastern Europe, as well as in Germany.