Real estate company - Further insolvency application at Signa
Another real estate company belonging to Austrian investor René Benko's ailing Signa Group has filed for insolvency. According to the Vienna Commercial Court, Signa Development Selection AG filed a corresponding application on Friday. The company, which specializes in project developments, is therefore seeking restructuring proceedings under self-administration, as Signa had already announced on Thursday. The company is to continue as a going concern and creditors are to be offered a quota of 30 percent payable within two years, it said.
According to the Creditreform protection association, the claims of around 200 creditors amount to around 1.3 billion euros. This means that the claims against the insolvent companies of the Signa Group currently total around twelve billion euros, said Creditreform spokesman Gerhard Weinhofer.
On Thursday, the group's real estate flagship, Signa Prime Selection AG, also filed for insolvency. The proceedings in self-administration have since been opened by the commercial court. Signa Prime owns commercial real estate in prime locations, including the Elbtower in Hamburg, the KaDeWe in Berlin and a luxury department store under construction in Vienna.
The highly complex Signa Group also has hundreds of smaller companies. "There is currently an insolvency cascade from top to bottom. The question is whether the cascade can be stopped in order to start liquidating the assets in peace," said Weinhofer. According to Creditreform, Signa Development's real estate portfolio includes 39 projects.
After strong growth during the low-interest phase, Benko 's empire had fallen into extreme difficulties due to higher interest rates, higher construction costs and higher energy prices. Signa also owns the department store chain Galeria Karstadt Kaufhof (GKK). It is not yet clear what the announced insolvency filing means for GKK itself.
According to Creditreform, Signa is the largest insolvency in Austria's post-war history. Signa Holding GmbH, whose insolvency proceedings have been running for around a month, is in first place with a debt of five billion euros, according to the APA news agency. It is followed by Signa Prime Selection AG with creditor claims of around 4.5 billion euros.
Read also:
- A clan member is punished here
- Traffic lawyer warns: Don't talk to the police!
- Will he be convicted as Jutta's murderer after 37 years?
- He also wanted to kill his cousin
- René Benko's struggles in the real estate sector extended to another company, Signa Construction AG, which recently filed an insolvency petition.
- Amidst the financial turmoil, Signa Development, a real estate company specialized in project development, sought restructuring proceedings under self-administration, as announced on Thursday.
- In Vienna, the number of insolvency petitions in the real estate sector has been escalating, with Rene Benko's Signa Group being at the forefront, including companies like Signa Development Selection AG and Signa Prime Selection AG.
- The insolvency petition for Signa Development Selection AG has brought the total debt claims against the Signa Group to approximately twelve billion euros, according to Gerhard Weinhofer, a spokesman for Creditreform.
- The construction sector in Austria has also been impacted by the Signa Group's insolvency, with various real estate companies and construction projects affected by the internal financial difficulties.
- With hundreds of smaller companies as part of the highly complex Signa Group, the insolvency petition for Signa Development Selection AG has sparked concerns about a potential ripple effect on the entire Austrian real estate market.
- In the midst of this insolvency cascade, retail trade companies, such as Benko's department store chain Galeria Karstadt Kaufhof (GKK), have been closely monitoring the developments and their potential impact on the business.
Source: www.stern.de
