Soares da Costa headquarters going for a song

 In Companies, Construction, Liquidations, News

The headquarters of the bankrupt Portuguese construction firm Soares da Costa in Vila Nova da Gaia (Porto) has only managed to achieve a maximum bid of €4.5 million in a second auction, well short of the €6.9 million minimum reserve price.

Founded in 1918 in Porto, the company was declared insolvent after achieving a miserable turnover of €1 million for 2021-2022, accumulating debts for those two years alone of some €7.7 million.
What was once the largest construction company in Portugal, employing 8,000 people at the end of the 20th century, now owes around €526.3 million to over 2,200 creditors, half of which are former employees with recognised credits of around €45 million.
The largest creditors are the State and the Sate-run bank Caixa Geral de Depósitos owed around €186.2 million, Social Security owed €20.6 million, and the Portuguese tax authorities €5.8 million, bank BPI €41 million, bank Bankinter €22.9 million, bank BCP €107 million, bank Montepio €13 million, bank Crédito Agrícola €11.2 million, bank BIC €11.1 million, and bank Santander €6.8 million.
Given the huge number of Non-Performing Loans, the insolvent company has, the official receiver says, assets worth only €28 million, some of which are not viable to be recovered, such as client credits of around €223 million.
The liquidator is trying to sell the remains of the company, a task that has proved difficult to carry out, with poorly attended online auctions for assets receiving offers well below estimate.