Signa Prime: So far no information on the 200 million bond due
Published: Thursday, Nov 30th 2023, 14:00
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Austrian billionaire René Benko's Signa Group, which is in financial difficulties, is approaching another deadline: its subsidiary Signa Prime must repay a bond of 201.5 million euros on Thursday (today).
There is no information on the repayment so far. Signa spokesman Robert Leingruber did not respond to an inquiry from the Austrian news agency APA. Signa Holding had filed for insolvency the day before. The real estate and retail holding company owes its creditors around 5 billion euros.
The Signa Finance 2020 5.C.S. bond maturing (today) on November 30, 2023 was issued on July 30, 2020. The financial liabilities and derivatives of the Signa Prime Group, which is not yet insolvent, amounted to EUR 10.7 billion at the end of 2022 according to the consolidated financial statements, of which EUR 2.4 billion was attributable to current liabilities.
Signa Prime bundles properties in prime inner-city locations in Austria, Germany, Switzerland, northern Italy and the UK. Signa Prime reported real estate assets (investment property) of EUR 14.2 billion in the 2022 annual financial statements. In the previous year, the figure was EUR 15 billion.
Uncertainty about insolvency
For Gerhard Weinhofer, Managing Director of the Creditreform Austria creditor protection association, the servicing of the bond represents a financial burden for Signa Prime. Whether it will also have to file for insolvency remains to be seen, he said in an interview with APA. In his opinion, however, the group of companies is at the "beginning of a possible chain of insolvencies" following the bankruptcy of the holding company.
Rising interest rates and construction costs as well as falling real estate valuations and declines in the retail business had triggered the insolvency of Signa Holding. "Despite considerable efforts in recent weeks, it was not possible to secure sufficient liquidity for an out-of-court restructuring," Signa announced.
According to an insider, Signa Prime is trying to "secure urgently needed liquid funds" in talks with investors. However, it remains to be seen whether this will succeed, a person familiar with the matter told Reuters news agency the previous day.
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