Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Founded in 1985 by Carlo Giorgetti, the firm is specialised in the construction of administrative buildings, banks and shopping centres and in the renewal of old classified buildings. It is one of the most important building societies of Luxembourg participating in national projects like the construction of the administrative building of Kirchberg. The bankruptcy, as announced on 21 October 2006, was caused by financial difficulties and debts. During the last months, Carlo Giorgetti sold the fleet of vehicles, the building material and the containers to another firm called Codess SARL. The directors promised that the majority of the workers would easily find another job (agreement with other construction societies).
The financial situation had deteriorated in the last months. Carlo Giorgetti needed 9 million euro to file his petition for bankruptcy. The first reason was the shortage of liquid assets. The director has been criticised for inappropriate dismissals in order to save costs.
Eurofound (2006), Carlo Giorgetti, Bankruptcy in Luxembourg, factsheet number 64342, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/64342.