It’s time!: Signa Prime files for bankruptcy

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There has been speculation on this issue for weeks, but now it has become reality: Signa Prime Selection AG, the most important subsidiary in the corporate network of Tyrolean real estate investor Rene Benko (46), filed for bankruptcy today at the Vienna Commercial Court. , Thursday. The company announced this in a press release this morning.

A restructuring procedure based on self-management is being resorted to. The aim is “the sustainable restructuring of the company and the orderly continuation of operational business operations within the framework of self-management.”

That’s not all: “Signa Development Selection AG is also in the same situation and will submit the application for restructuring transactions with self-management tomorrow, December 29, 2023,” Signa’s letter says.

In Signa Prime, Benko has shares in well-known properties such as the Vienna Golden Quarter building complex, the Lamarr department store on Vienna’s Mariahilfer Strasse, the Berlin KaDeWe or the Elbtower and Alsterarkaden in Hamburg. The value of the real estate was estimated by the company itself at 20.4 billion euros in November. Signa Prime builds and rents real estate. Other companies are responsible for the retail business of department stores.

Interest was too high

Large loans and other loans led to high interest obligations. Signa Prime had to pay almost 426 million euros in interest in the 2022 financial year alone.

Self-managed restructuring proceedings were initiated through parent company Signa Holding at the end of November. Switzerland-based Signa Retail Selection AG announced that it will liquidate the company in an orderly manner.

Despite everything, Signa Prime’s board members received bonuses of approximately 19.13 million euros in 2022. (SDA/rae)

Source :Blick