Procrastination in insolvency - Residential tower construction in Fellbach drags on - charge after insolvency
In the context of the insolvency of a large residential tower project in Fellbach near Stuttgart in 2016, the Stuttgart Public Prosecutor's Office filed charges against two former responsible parties. The men are accused of deliberate insolvency delay, as a spokesperson announced. The duo was in charge of two companies. Both companies were insolvent, according to the indictment, since mid-May 2016. However, the insolvency application was not filed until months later. The "Stuttgarter Nachrichten" and "Stuttgarter Zeitung" reported on this earlier.
The men are also charged with market manipulation from the previous September. They allegedly made statements in the media in October 2016 that the construction project could be completed and that there were no financial problems. Furthermore, they allegedly spread false and misleading information about the economic situation through a November 2016 Ad-Hoc announcement regarding a bond and thus stabilized the stock price of the security.
The Landgericht Stuttgart has not yet decided on the opening of the main proceedings and the admission of the indictment, a spokesperson for the court stated. Meanwhile, the project is known as Schwabenlandtower and has landed with the real estate company Adler Group. A spokesperson for the company said: "We intend to continue selling the object and are continuing our search for potential transaction partners."
The history of the construction of the so-called Schwabenlandtower is eventful: The groundbreaking ceremony took place in 2014. Shortly after the topping-out ceremony in September 2016, the original builder had to file for insolvency. Two years later, the previous CG-Group took over the project and assigned it a new concept. Since then, the project developer, now named Consus Real Estate, has been converting the originally planned 66 luxury apartments into smaller, cheaper rental apartments. However, the construction has been unfinished for years and there is little progress.
- The indictment against the two former responsible parties, as reported by the "Stuttgarter Nachrichten" and "Stuttgarter Zeitung," includes charges of deliberate insolvency delay in relation to a large residential tower project in Fellbach near Stuttgart.
- In addition to insolvency delay, the men are also accused of market manipulation, having made false statements to the media and spreading misleading information about the project's financial situation.
- The real estate company Adler Group is currently managing the Schwabenlandtower project, which has a troubled history, with the groundbreaking ceremony having taken place in 2014 and the project being converted into smaller, cheaper rental apartments due to insolvency issues.
- The Landgericht Stuttgart is waiting to decide on the opening of the main proceedings and the admission of the indictment against the two former responsible parties, accused of procrastination in insolvency and market manipulation.
- Despite the legal proceedings, the Adler Group intends to continue selling the Schwabenlandtower and is currently seeking potential transaction partners.
- The "Stuttgarter Zeitung" reported on the insolvency of the project in 2016, noting that the insolvency application was filed months after the companies involved had been declared insolvent according to the indictment.
