Administrators in mega Imtech bankruptcy collect €40 million from former execs & KPMG

The administrators appointed to oversee the 2015 bankruptcy of Imtech have agreed on a settlement of 40 million euros with the former executives and supervisory board members of the technology company. Accountants' office KPMG will also have to contribute to the settlement. The settlement will spare the former directors and commissioners from further court cases.

Imtech was rocked by an enormous accounting scandal in 2013. The company handled billions of euros in turnover and around 22,000 employees. Due to accounting fraud at a subsidiary company in Germany, and large unsuccessful projects like a theme park in Poland, the company went under.

The business betrayed the trust of the banks and investors and went bankrupt in the summer of 2015. It is considered one of the largest bankruptcies in the Netherlands.

Bankruptcy administrators blamed Imtech executives and board members for improper management in the five years before the bankruptcy. Additionally, they were critical of KPMG's audit of the Imtech financials. The accountancy office approved the yearly financial reports.

The curators worked in cooperation with the investors' association, VEB, which represents some of the wronged Imtech investors. The bulk of the money paid by KPMG and the insurers that covered the Imtech executives will go to Imtech creditors.

Almost 32 million euros will go to the creditors. The VEB will receive around seven million euros. These funds are earmarked for investors who lost money on their Imtech shares during a certain period. Some of the lawyers working for the directors and commissioners will receive a million euros for bills that went unpaid for years.

Administrators also reached an agreement with Imtech's bankers and money lenders last year. Additionally, millions of euros were contributed to a fund to be used to repay the bankrupt company's creditors. Along with the new settlement, there is a total of 60 million euros available to partially repay creditors.

The bankers and other financiers promised they would not file claims for the proceeds of the settlements in that case. Due to this, curators say that "regular" creditors who usually do not have priority were able to receive a "substantial payment."