Signa cannot rest: the inconsistencies within the empire of real estate juggler René Benko became clear on Monday evening when the company announced the immediate dismissal of top manager Timo Herzberg. The background is probably questionable transactions.
Herzberg was CEO of the two currently non-insolvent subsidiaries Signa Prime Selection and Signa Development. The exact reasons for the drastic step to deport him are still unknown. There was an “urgent suspicion of gross dereliction of duty as a board member,” the company said cryptically on Monday evening.
“Possibly questionable transactions”
The dismissal may have been prompted by an extensive list of questions that the “Frankfurter Allgemeine Zeitung” sent to the supervisory board of the real estate company on Monday morning. This involved investigation into “possible questionable transactions by Herzberg”, as the “FAZ” reports online. So the top manager has the majority in a company called Havit.
She rented space in Signa buildings, but apparently at low rents that were unusual for the market. According to Herzberg, a question from the newspaper on Monday has not yet been answered. It is not clear whether this questionable practice is related to the “clear suspicion” that Signa commissioners and former Chancellor Alfred Gusenbauer talked about on Monday evening. However, there have likely been inconsistencies at Signa on several occasions regarding rental prices that deviate significantly from market levels.
Criticism of high real estate valuations
René Benko is said to have “increased real estate valuations with expensive rental agreements,” writes the Handelsblatt. From an expert point of view, rents for luxury department stores are sometimes well above market levels. However, Signa denies exorbitant rents – it “rejects all allegations”.
Are external management used in restructuring procedures?
It could be decided next week whether the restructuring process envisaged by the bankrupt Signa Holding will become one in-house with external management. Creditors would then only receive 20 instead of 30 percent of their claims. In January it should become clear who actually wants how much money from Signa. On February 12, a scenario will be available on what will happen next for the group.
Meanwhile, Benko’s empire continues to collapse. According to creditor protection circles, Signa Informationstechnologie GmbH filed for bankruptcy at the Vienna Commercial Court on Tuesday. About 40 employees are affected by the bankruptcy. Insolvency proceedings should be opened today or tomorrow at the latest.
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.
