Grasser has 21 million euros in debt: Private bankruptcy opened

The main creditors are the Republic of Austria with around 12.7 million euros due to the private party award from the court proceedings, as well as the tax office with 7.9 million euros in tax claims. This was announced by the Alpine Creditors' Association on Tuesday after the opening of the debt settlement proceedings at the district court in Kitzbühel.

Grasser estimated his assets at 300,000 euros. In addition to the Republic and the tax office, tax advisors and lawyers are also among the total of 7 creditors, as Gerhard Weinhofer, managing director of the creditor protection association Creditreform, added upon APA request.

As a significant cause of insolvency, Grasser cited the criminal proceedings and the resulting compensation to the state - 9.8 million from the so-called private party award plus interest. Grasser is unlikely to be able to rely on a regular income to settle this sum, as he is currently "unemployed," writes the AKV. The trial "hindered his professional advancement," and it was "not possible" for him to find employment, Grasser stated as the reason.

Grasser offers cash quota of 3 percent

The ex-politician wants to discharge his debts through a cash quota of 3 percent within two weeks, with the necessary funds to be provided "by a third party." Based on the 21 million euros, this would be at least 630,000 euros. If the creditors do not agree to this payment plan, a garnishment procedure will take place, which usually lasts three to five years, explained AKV credit protector Cornelia Wesenauer. The problem for Grasser: If part of the liabilities, as in his case, is based on a criminal conviction, a discharge of residual debt is not provided.

This means that the part of the liabilities he owes to the Republic via the private party award would remain even after the three to five years, should the state not waive its claims. The Republic of Austria is represented in the bankruptcy proceedings by the Financial Procurator's Office. Without their consent, the payment plan will not achieve a majority. "It remains to be seen whether an agreement can be reached with the Republic of Austria, which acts as the main creditor in this proceeding," said KSV1870. The creditor protection association expects "that there will soon be talks and negotiations in this regard."

Attorney Herbert Matzunski was appointed as the insolvency administrator. The first creditors' meeting and the vote on the payment plan will take place on August 6, 2025.

Former finance minister before imprisonment

Grasser was the main defendant in the so-called Buwog case and was convicted of breach of trust and accepting gifts. In the largest corruption trial of the Second Republic, it was about the sale of 60,000 federal apartments to Immofinanz in 2004. The losing bidder CA Immo had offered just 1 million euros less for the apartments. It only became apparent a few years later that the privatization might have been rigged when it became known that two of Grasser's friends - the two former lobbyists Walter Meischberger and Peter Hochegger - received 9.6 million euros in commissions. Grasser will soon have to begin his imprisonment.

(APA/Red)

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