There has been a significant change in Signa Holding’s insolvency proceedings: while Signa Holding had applied for a self-managed restructuring procedure on November 29, 2023, the company has now applied to switch to a non-self-managed restructuring procedure, according to a press release from the restructuring administrator Christof Stapf Thursday. It is still unclear whether this will also lead to changes in the creditor quota.
“The withdrawal of self-administration does not in fact have a significant impact on further developments in the insolvency proceedings, as all actions of the debtor since the opening of the restructuring proceedings have been carried out in close coordination with the restructuring administrator,” Karl-Heinz said. Götze from the Kreditschutzverband 1870, according to a press release.
“The withdrawal of self-government also does not affect the restructuring and stabilization measures previously initiated by the restructuring administrator,” Götze said.
Holding director powerless
However, the withdrawal brings one significant change: long-standing holding directors Marcus Mühlberger and Christoph Stadlhuber, considered close confidantes of financial juggler René Benko, formally remain in management but are now powerless. The reorganization administrator becomes the liquidator; From now on, he is no longer just a kind of super commissioner, but also works on the board.
Creditors as victims
As is often the case, creditors may suffer. In a self-management procedure, they must be offered a quota of at least 30 percent; in a restructuring procedure without self-management, only a minimum of 20 percent of the claims must be settled under the procedure. However, no reduction in the quota has been requested so far.
Signa Holding: 5.26 billion euros in liabilities
According to the bankruptcy filing, the holding company’s debts amount to 5.26 billion euros, of which only about 252 million euros are covered. According to the restructuring administrator, the quota for creditors ultimately depends on the negotiations on the restructuring plan. The plan currently offered with a 30 percent quota has not been withdrawn, the Alpine Creditors Association (AKV) said in a press release.
Restructuring plan meetings scheduled for March 18
The change in procedure is justified by the restructuring procedures through Signa Prime Selection and Signa Development Selection, in which Signa Holding has a significant interest. The restructuring plan meetings are scheduled for March 18 – too late for a restructuring plan for Signa Holding. The change in the procedure removes the time pressure. The former restructuring administrator Stapf will therefore take over the management of the holding company as curator. Former directors Marcus Mühlberger and Christoph Stadlhuber remain on board.
The meeting on Signa Holding’s restructuring plan is scheduled for the end of April. By then, the company will have been significantly downsized, everything that is not necessary for business operations will be sold and the holding structure of the holding company will have been stabilized, the statement also said.
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.
