Another bankruptcy application has been filed for the ailing Signa Group of Austrian investor René Benko. According to the Vienna Commercial Court, Signa Development Selection AG filed for bankruptcy on Friday.
The company, which specializes in project developments, has filed for bankruptcy, according to AKV, KSV1870 and Creditreform.
Like Signa Holding and Prime Selection, Development Selection aims for a restructuring with self-management; the quota for creditors should be 30 percent. According to current information, the over-indebtedness of development cooperation amounts to approximately 1 billion euros.
39 projects affected
Signa Development was founded in 2014. It is located in Innsbruck. The gross asset value (GAV) amounted to around 2.8 billion euros at the end of 2022, according to Gerhard Weinhofer of Creditreform. The real estate portfolio includes a total of 39 projects and the company has direct and indirect interests in 290 companies.
About 200 creditors and 13 employees are affected. The assets of more than 296 million would be offset by liabilities of approximately 1.3 billion. According to Creditreform, the stagnant real estate market and rising costs and interest rates are cited as reasons for the bankruptcy.
After strong growth during the low interest rate phase, René Benko’s empire encountered extreme difficulties due to higher interest rates, costs and energy prices. The Swiss subsidiary Signa Retail Selection is already in a debt moratorium. This includes the Signa Group’s 50 percent share in the Swiss department store group Globus. The remaining 50 percent of Globus is owned by the Thai Central Group. (yam/sda/awp/dpa/apa)
Soource :Watson
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