The Swiss Times - Swiss News in English

Loan for insolvent Signa Prime

Austrian investor René Benko's insolvent Signa Prime Selection AG has been granted a loan from the insolvency estate. The asset manager Attestor Ltd is providing 100 million euros, the restructuring administrator Abel Rechtsanwälte announced on Friday.

"This will significantly stabilize the company's liquidity with the aim of realizing the assets in a structured manner," the statement continued. The parties have agreed not to disclose details of the terms of the loan. A debtor-in-possession loan is a loan to maintain business operations and ensure solvency.

Signa Prime is considered the jewel in the Signa Group's crown. It had slipped into crisis in the wake of rising interest rates, construction costs and energy prices. In Switzerland, the Globus chain of luxury department stores is part of Benko's corporate empire.

The Prime portfolio includes the still unfinished Elbtower in Hamburg, the luxury department store KaDeWe in Berlin, properties belonging to the Galeria Karstadt Kaufhof department store chain and the building of the Austrian Constitutional Court. According to the restructuring administrator, creditors of Signa Prime have registered claims of around 12.8 billion euros.

©Keystone/SDA

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