Personal bankruptcy proceedings initiated for Karl-Heinz Grasser, involving a staggering EUR 21 million debt.
Debtor in the Spotlight: Karl-Heinz Grasser and His Financial Woes
Karl-Heinz Grasser, a former Austrian Finance Minister, has found himself in a challenging financial situation. Here's a glance at his current predicament, including his debts, creditors, and assets, along with the status of his insolvency proceedings.
A Mountain of Debts
The sum total of Karl-Heinz Grasser's debts stands at a staggering approximately 21 million euros. A significant chunk of this debt is owed to the Republic of Austria, primarily as a result of a "private party award" from court proceedings, and tax claims from the tax office, amounting to around 12.7 million euros and 7.9 million euros, respectively [1][3]. Additionally, Grasser's professional services have been provided to seven creditors in total [1].
authority figures
The Republic of Austria and the tax office are the chief creditors, with debts nearing 12.7 million euros and 7.9 million euros respectively [1]. Tax advisors and lawyers also feature on the list of creditors.
Meager Assets
When it comes to assets, Grasser estimated their value to be a mere 300,000 euros[1]. These assets, primarily account balances and movables, are unlikely to cover even a fraction of his substantial debts.
Courtroom Drama
On April 30, 2025, Grasser initiated insolvency proceedings at the Kitzbühel District Court. The main trigger for these proceedings was his inability to meet payment obligations resulting from his conviction [3][4]. The ongoing criminal proceedings related to the Buwog scandal are thought to have significantly hindered his professional advancement and employment opportunities [1][3].
Debt Resolution Efforts
In an attempt to settle his debts, Grasser has put forth a payment plan as part of the insolvency proceedings. To raise the necessary funds for this plan, the support of a third party is essential. The challenge for Grasser lies in obtaining a discharge from his debts, as liabilities stemming from illegal acts, such as his criminal convictions, can't be forgiven in the context of insolvency proceedings [3][4].
Gaining the approval of his main creditor, the Republic of Austria, will be crucial for Grasser to achieve discharge from his debts. Without their agreement, the proposed payment plan will fail to gain majority support among creditors.
- "Investigation into the Affairs of Karl-Heinz Grasser" - Official court document
- "Austrian Finance Minister's Insolvency Proceedings" - Kitzbühel District Court filing
- "Million-dollar Collapse of a Well-known Steel Trader" - Outbrain UK Ltd article
- "Buwog Affair: End of a 'precedent' procedure" - Outbrain UK Ltd article
- Despite the steep approximate 21 million euros in debt, Karl-Heinz Grasser, the former Austrian Finance Minister, has found himself with meager assets valued at only 300,000 euros.
- Two of the significant debtors owed by Karl-Heinz Grasser are the Republic of Austria and the tax office, totaling around 12.7 million euros and 7.9 million euros respectively.
- Likely due to the failure to meet payment obligations resulting from his conviction, Grasser initiated insolvency proceedings at the Kitzbühel District Court on April 30, 2025.
- To resolve his financial woes, Grasser has proposed a payment plan within the insolvency proceedings, but obtaining a discharge from his debts, particularly those stemming from his criminal convictions, will be a challenge, especially without the approval of his main creditor, the Republic of Austria.
