Signa holding company and subsidiaries are apparently preparing to file for insolvency
Published: Friday, Nov 24th 2023, 13:30
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The financial situation of Tyrolean investor René Benko's Signa Group is apparently coming to a head. The news magazines "News" from Austria and "Der Spiegel" from Germany report online with reference to insiders that the situation at Signa Holding and its subsidiaries Prime and Development is "so critical" that "insolvency applications are being prepared".
A Signa spokesperson told the two media outlets that there was no new situation and that talks were being held with potential financing partners. The Supervisory Board of Signa Prime Selection is now discussing the next steps, reported the German "Wirtschaftswoche" (online). Signa did not respond to a written request from the Austrian news agency APA for the time being.
As already reported, a 200 million euro Signa bond is due at the end of November, according to the German newspaper "Handelsblatt". According to "News" and "Der Spiegel", the Signa Group must raise 500 million euros by the end of the year in order not to become insolvent.
Former Federal Chancellor from Austria involved
Signa's older consultancy costs have now also become an issue in the media. According to the weekly magazine "News", the former Austrian Chancellor and Signa Prime Supervisory Board Chairman since 2010, Alfred Gusenbauer, is said to have invoiced Signa Holding for consultancy fees amounting to over EUR 7 million for the years 2020 to spring 2022.
According to the magazine report, a description of the invoice services literally states that the company "advised on the restructuring and financing of the D18 package of the Galleria Kaufhof Karstadt Group and on the application for a subordinated loan from the WST for GKK" (Galeria Kaufhof Karstadt, note).
In addition, Gusenbauer receives remuneration as a member of the Advisory Board of Signa Holding and as Chairman of the Supervisory Board and Chief Controller of Signa Prime Selection, Signa Development Selection and SIGNA RFR US Selection.
Construction sites partially at a standstill
The construction site at the Signa Elbtower project in the northern German metropolis of Hamburg has been at a standstill for a month due to unpaid invoices. "Construction work on the Elbtower is still at a standstill. We are currently assuming that it will not be resumed next week either," said the affected construction company Lupp in response to an APA inquiry. They are waiting for "information from the investors on how to proceed".
Signa company founder Benko is currently trying to raise further funds. According to "Der Spiegel" and "News", he is also putting works of art worth millions up for sale. According to several insiders, the painting "L'Étreinte" by Pablo Picasso and a self-portrait from 1988 by the artist Jean-Michel Basquiat are to be turned into cash.
Effects as far away as Switzerland
René Benko's case also made headlines in Switzerland. Bank Julius Baer allegedly granted large loans to the Signa holding company. Julius Baer shares have been under pressure on the stock market in recent days.
Benko is also co-owner of the traditional Globus department store in Switzerland. Signa and the Central Group each own half of the Globus Group and its real estate. The Central Group of the Thai Chirathivat family had therefore made a verbal commitment to Globus in order to support the department store.
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