No stone remains unturned in the business network of real estate juggler René Benko. On Monday, Timo Herzberg was “terminated without notice” as CEO of Signa Prime Selection AG and Signa Development Selection AG. Renovator Erhard Grossnig will become spokesperson for the boards of both real estate companies.
The company announced on Monday evening that the companies will be further reorganized and restructured. Several companies from the Signa group had recently filed for bankruptcy.
“Urgent suspicion of gross neglect of duty”
According to the Benkos Group, extraordinary meetings of the supervisory boards of Signa Prime and Signa Development took place on Monday evening. Herzberg was immediately removed from his duties and “terminated without notice.” “The reasons for the dismissals are an urgent suspicion of gross violations of duties as a board member,” said a statement from Signa.
Grossnigg was appointed spokesperson for the board of directors of the two companies during the two meetings. “The task remains the same: he will continue the reorganization and restructuring steps for the two real estate companies and act in close coordination with the supervisory boards of these companies,” the report said.
“No Other Choice”
The head of the supervisory boards of both companies is former Chancellor Alfred Gusenbauer. On Monday evening he expressed his regret about what had happened: “Unfortunately we had to make this decision and take this difficult step. The suspicion was clear and left the supervisory boards no other choice,” the former SPÖ boss said, according to the statement. “Especially in challenging times, one hundred percent trust in the people involved and unity in decisions is required,” said Gusenbauer.
“Need peace and order”
The ex-politician has high expectations of Grossnig, an “excellent expert and specialist in restructuring issues”. Grossnig was recently brought to the ailing Signa to restructure its corporate structure. “In the meantime, we need peace and order for these Signa companies, their partners, investors and employees,” Gusenbauer said. Today’s drastic step is intended to “create further confidence in the current situation.”
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.
