Financial Ruin and Incarceration: A Look into Grasser's Current Status
Headliner: Ex-Finance Minister Karl-Heinz Grasser Faces Insolvency Over 21 Million Euro Debt
Ya boy, Karl-Heinz Grasser, former Austrian Finance Minister, is in deep doo-doo, mate! He's up to his eyeballs in debt, owing a whopping 21 million euros to the Republic, the tax office, tax advisors, and lawyers. This juicy info came out when the Alpine Creditor Association (AKV) announced the opening of a debt settlement procedure (a posh word for personal insolvency) at the Kitzbühel district court.
Grasser admits that he can't pay his debts due to his criminal proceedings and the Republic's claims against him. The big money involves the 9.8 million euros he and other convicted parties swiped during the 2004 Buwog privatization. Including interest, this claim amounts to a cool 12.7 million euros. If that ain't enough, throw in another 7.9 million euros in tax claims from the tax office.
Our boy Grasser claims he's unemployed (probably due to the whole criminal conviction thing). He suggested offering a cash payment of three percent within two weeks, totaling about 630,000 euros, as a settlement. But first, he needs the creditors to agree to his payment plan. And if they say no, the enforcement procedure will follow, taking about three to five years. Crikey, that's a long time!
Incidentally, the part of the debt based on Grasser's criminal conviction won't be wiped clean, even after the three to five years unless the Republic waives its claims. The Republic will be represented in the insolvency proceedings by the Finance Prosecutor's Office. Without their consent, the deal can't go through.
By the way, the Finance Prosecutor's Office has also challenged the rehabilitation plans in the Signa case. The first creditors' meeting to vote on the payment plan is scheduled for August 6.
Meanwhile, Grasser should be behind bars. Some theories swirled about him avoiding prison due to an incorrect date on the written verdict, but the Court of Appeal's press office squashed that rumor. Grasser needs to report to the justice facility in Innsbruck within 30 days of receiving the court's request, and once there, he can serve his time. His sentence was reduced from eight to four years, so he might be out in no time!
- Karl-Heinz Grasser, the former Austrian Finance Minister, is entangled in a debt settlement procedure over a 21 million euro debt, following his insolvency announcement by the Alpine Creditor Association.
- The debt includes amounts from the Republic, the tax office, tax advisors, lawyers, and other claims related to his criminal proceedings and the Buwog privatization.
- Grasser has proposed a cash payment settlement of around 630,000 euros to the creditors, pending their agreement to his proposed payment plan.
- If the creditors reject his payment plan, an enforcement procedure will be initiated, taking up to five years to complete. The Republic's claims from Grasser's criminal conviction will not be waived even after the enforcement procedure, unless the Republic decides to do so.
- In other news, the Finance Prosecutor's Office has also challenged the rehabilitation plans in the Signa case and has scheduled the first creditors' meeting to vote on the payment plan for August 6. Despite a sentence reduction from eight to four years, Grasser must report to Innsbruck's justice facility within 30 days of receiving the court's request, amidst ongoing discussions about his potential prison term.
