First Signa subsidiary in Germany apparently bankrupt
The Signa Group is apparently starting to clean up. According to a report, a first company has filed for insolvency and further steps of this kind are likely to follow.
A subsidiary of Austrian investor Rene Benko's ailing Signa Group has apparently filed for insolvency. Signa Real Estate Management Germany has filed an official petition for bankruptcy at the Charlottenburg district court, reported "Der Spiegel". The company is a subsidiary of Signa Prime Selection, in which Signa has bundled prestigious properties such as the luxury department store KadeWe in Berlin, the Alsterhaus in Hamburg and the Oberpollinger in Munich. Previously, "Der Spiegel" had reported that Signa was preparing to file for insolvency for several parts of the company. Signa was also unable to comment on this.
According to insiders, Signa is suffering from liquidity problems. The group has come under pressure due to rapidly rising interest rates and exploding construction costs. The widely ramified Signa empire also includes the German department store giant Galeria.
Following the withdrawal of founder Benko, the troubled Signa Group empire intends to present a restructuring plan by the end of the month. "The aim is to draw up a plan for the main steps of the restructuring by the end of November and present it to the shareholders," said Arndt Geiwitz, Chairman of the Advisory Board in charge of the restructuring. "On the one hand, all areas of the Signa Group must be put to the test and, on the other, long-term solutions must be found."
Austrian investor Benko withdrew from the company at the beginning of the month and handed over the chairmanship of the Signa Holding advisory board to Geiwitz. The auditor and tax consultant, who became known as the insolvency administrator of the Schlecker drugstore group, also took over the chairmanship of the holding company's shareholders' committee and is to represent the interests of the Benko family private foundation for the duration of the restructuring. According to the Signa Group, the duration of the restructuring cannot be estimated at present.
The insolvency filing by Signa Real Estate Management Germany, a subsidiary of Rene Benko's Signa Group, adds to the Group's financial struggles. Amidst liquidity problems and rising interest rates, Benko recently stepped down from his role and appointed Arndt Geiwitz to lead the company's restructuring efforts.
Source: www.ntv.de
