Fiber Optic Firm phoenix Engineering Files for Insolvency, Leaving Subcontractors and Workers Unpaid – Some Now Homeless
Köln, Germany – Phoenix Engineering GmbH, a company based in Köln, Germany and Greece, has filed for insolvency, leaving a trail of unpaid debts exceeding €2.6 million and, in some cases, rendering workers homeless, according to a report by SWR (Southwest Broadcasting). The company, a general contractor involved in numerous fiber optic projects including those in Bad Ems-Nassau and Loreley, has seemingly vanished, with its Cologne office reportedly cleared and contact attempts unsuccessful.
Subcontractors are reporting significant outstanding payments. Murat Yaman, a garden and landscape builder from Bad Ems, is owed over €200,000, while Ferhat Ekinci, Marko Schlegel, and sascha Göppert report similar experiences.
The situation is particularly dire for foreign workers, primarily from Romania and greece, who claim they haven’t received wages for months.SWR reports that some of these workers are now experiencing homelessness, as Phoenix allegedly failed to pay for thier accommodation.
A preliminary insolvency administrator has been appointed by the Cologne District Court, but the process is in its early stages. Priority will be given to direct employees seeking bankruptcy money, with subcontractor claims to be assessed only after a control procedure is opened, leaving the timeline for potential payments uncertain.
The role of UGG, the company that commissioned Phoenix for private sector fiber optic expansion without public funding, is under scrutiny. The district governance claims no obligation for these projects, while UGG maintains it made all payments to Phoenix in full. The cause of the widespread non-payment remains unclear.
Phoenix Engineering has not yet responded to a request for comment from SWR.