THE FINANCIAL problems plaguing construction companies have translated into more than just a slump in their profits – an increasing number of firms have headed into bankruptcy and the economic crisis is to blame, Development News Slovakia magazine wrote in early March. The magazine’s analysis of the number of bankruptcies and restructurings involving firms in the construction industry between 2008 and 2010 found that the economic crisis was the primary reason behind the financial problems experienced by these firms. Construction companies had problems in settling their accounts, due sometimes to poor managerial decisions but as well because some investors shifted their financial problems down to construction companies, causing secondary insolvency. The number of bankruptcies and restructurings rose each year between 2008 and 2010. In 2010 alone there were 38 bankruptcies declared by construction firms, up nearly 36 percent from the previous year and an additional 15 restructurings, up 150 percent from 2009.
14. Mar 2011 at 0:00 | Compiled by Spectator staff