Further insolvency application at Signa Development Selection
Published: Friday, Dec 29th 2023, 11:20
Updated At: Saturday, Dec 30th 2023, 00:59
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Austrian investor René Benko's ailing Signa Group has filed for insolvency. According to the Vienna Commercial Court, Signa Development Selection AG filed for insolvency on Friday.
According to AKV, KSV1870 and Creditreform, the company, which specializes in project developments, has filed for insolvency.
Like Signa Holding and Prime Selection, Development Selection is seeking a restructuring with self-administration, with a 30 percent quota for creditors. According to current information, Development's over-indebtedness amounts to around EUR 1 billion.
39 projects affected
Signa Development was founded in 2014. It is based in Innsbruck. The gross asset value (GAV) was around 2.8 billion euros at the end of 2022, according to Gerhard Weinhofer from Creditreform. The real estate portfolio comprises a total of 39 projects and the company has direct and indirect investments in 290 companies.
Around 200 creditors and 13 employees are affected. The assets of a good 296 million would be offset by liabilities of around 1.3 billion. According to Creditreform, the reasons for the insolvency are the stagnating real estate market and rising costs and interest rates.
After strong growth during the low-interest phase, René Benko's empire had fallen into extreme difficulties due to higher interest rates, costs and energy prices. The Swiss subsidiary Signa Retail Selection is already in debt restructuring moratorium. Among other things, it holds the Signa Group's 50 percent stake in the Swiss department store group Globus. The remaining 50 percent of Globus is held by the Thai Central Group.
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