Jan 20, 2010. /Lesprom Network/. Machinery producer Reich-Austria GmbH and its parent holding group Holz-Her GmbH have started bankruptcy proceedings, as Austrian Times reported. The Alpine Land Creditors Association (AKV) said the firms based in Voitsberg, Styria, had debts of around Euro 37 million and more than 800 creditors. AKV said the proceedings would affect 260 of 290 employees in Austria and 90 in Germany. Reich-Austria, which started in 1914, has suffered a massive drop in business because of the recession and a 50% fall in turnover year on year to Euro 50 million in 2009 led to banks slashing its credit lines, AKV said. Reich-Austria specialises in high-value machines for the wood-working industry.