The next bankruptcy filing is imminent in the collapsing Signa empire of real estate juggler René Benko. This time the central First Division would have been hit.
After its parent company Signa Holding filed for bankruptcy, its important subsidiary Signa Prime is now apparently also preparing a corresponding step. In its report on Friday, “Spiegel” cited people familiar with the matter.
Fatal weeks for Signa
A bankruptcy filing is expected within the next two weeks, the German news magazine reports. Signa is in a bind and has not yet responded to the current developments.
Reorganization plan must convince court
According to Spiegel insiders, Signa Prime’s management is preparing for self-insolvency. We are currently working hard on a restructuring plan that will convince the court of this form of bankruptcy. It is hoped that this can save assets. The more assets retained, the more likely the holding company will survive the insolvency proceedings. However, it is unclear whether the plan will work.
Domino effect among subsidiaries
Only on Wednesday did three other German subsidiaries of Signa file for bankruptcy. Signa Financial Services GmbH based in Frankfurt/Main, Signa REM Germany Rent GmbH and SCAx GmbH (both Munich) have filed corresponding applications with the Berlin-Charlottenburg District Court. As billions in debt pile up, real estate valuations plummet.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
