### Elko König, Manufacturer of Engine Components, Files for Insolvency
The Vorarlberg-based engine components manufacturer Elko König, located in Rankweil, is facing significant financial difficulties and has initiated a reorganization procedure at the Feldkirch Regional Court. Approximately 360 employees and 260 creditors are affected, with debts amounting to around 21.3 million euros.
Elko König, a manufacturer of engine components based in Rankweil (district of Feldkirch), has been struggling economically for some time. On Monday, a reorganization procedure with self-administration was initiated at the Feldkirch Regional Court. According to KSV 1870, the company's liabilities amount to approximately 21.3 million euros. The insolvency affects around 360 employees and 260 creditors.
### Inflation, Interest Rates, Energy Costs: Insolvencies Reach Record Highs
The company cited "significant declines in orders and sales," the increased energy costs over the past year, and "exceptionally high collective agreement settlements" that have led to nearly 20% wage cost increases over the past two years as the causes of its financial distress. The submitted reorganization plan includes a repayment of 30% of the debts within two years, financed through the continued operation of the business.
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In November 2023, Elko König had already introduced a four-day work week with the approval of the works council due to drastic revenue declines to avoid further staff reductions after a collective wage increase. In May, around 70 employees were preemptively registered for termination with the AMS.
### The Largest Insolvencies of Early 2024
Elko König produces pistons and cylinders for two-stroke and four-stroke engines as well as gas and diesel units, which are used in high-performance engines for motorcycles and industrial motors. The company supplies all leading manufacturers and has secured a critical and irreplaceable position in the supply chain of these global market leaders through its specialization and performance.
Creditors can register their claims until July 4. Negotiations and voting on the reorganization plan are scheduled to take place on September 5.
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