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Libya collapse causes closure of Salzburg civil engineering firm

A successful civil engineering company in Salzburg has been forced into liquidation after they were involved in building a railway project in Libya - but were then not paid after the overthrowing of the Gaddafi regime.

The company Intergeo which specialises in engineering and building technology had been employed to help build a railway in the North African country.

Run by Peter Müller and Wolfgang Gebauer it had been increasingly operating in the international market in recent years out of its headquarters in Salzburg and with two subsidiary offices in Villach and Innsbruck.

The work in Libya had been carried out without any problems but when payment was due the money was never transferred as the country descended into chaos with the revolution – and the firm was never paid more than 1,000,000 euros in fees that had been agreed.

That resulted in the firm being left with debts of 730,000 euros. Some 12 staff have lost their jobs and 80 creditors are affected by the firm's closure.

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