German subsidiary of Signa Prime is insolvent according to “Spiegel”
Published: Friday, Nov 24th 2023, 17:30
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On Friday afternoon, a German subsidiary of Signa Prime Selection filed for insolvency, according to the news magazine "Der Spiegel" (online). Accordingly, Signa Real Estate Management Germany filed an official application for bankruptcy at the Charlottenburg district court.
This affects a German subsidiary of Signa Prime Selection, in which company founder Rene Benko has collected his valuable portfolio properties. The Austrian press agency APA subsequently contacted Signa and the office of Signa redeveloper Arndt Geiwitz for comment. However, no official information was available at short notice.
Media reports had already previously revealed that the financial situation of the Signa Group, owned by Tyrolean investor René Benko, was apparently getting worse. The German news magazine "Spiegel" reported online, citing insiders, that the situation at Signa Holding and its subsidiaries Prime and Development was "so critical" that "insolvency applications are being prepared" - the first application was filed on Friday afternoon, the magazine wrote.
Discussions with partners
A Signa spokesperson had told "Spiegel" and "News" before the announcement of the first insolvency in the Signa empire, which had not yet been officially confirmed, that there was no new situation and that talks were being held with potential financing partners.
According to the Austrian news magazine "News" (online edition), the motivation of the current Signa co-shareholders and investors to provide the convoluted group of companies with fresh money is said to be very limited. Many are displeased that company founder Benko has not responded to their demand to withdraw completely from Signa and hand over his voting rights to the German reorganizer Arndt Geiwitz.
The Supervisory Board of Signa Prime Selection is now discussing the next steps, reports the German newspaper "WirtschaftsWoche" (online). Signa did not respond to a written APA inquiry for the time being.
"Der Standard" (online) from Austria also wrote that a type of staff meeting is planned at Signa on Tuesday, at which information will be provided on the financial situation and further steps. As already reported, a EUR 200 million Signa bond is due at the end of November, according to the German newspaper "Handelsblatt". According to "News" and "Spiegel", the Signa Group must raise 500 million euros by the end of the year in order not to become insolvent.
The construction site at Signa's major Elbtower project in Hamburg has been at a standstill for a month due to unpaid invoices. "Construction work on the Elbtower is still suspended. 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".
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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