Because they want an investigation, Signa’s creditors have now filed a complaint against the real estate group. The Public Prosecution Service for Economic and Corruption (WKStA), which is also responsible for the current short trial, will conduct an investigation.
The accusation: Signa Development, one of the group’s largest companies, had carried out “illegal transactions” before filing for bankruptcy on December 29. On 22 pages, Signa investors such as banks, insurers and foundations indicate that they have observed an outflow of more than 662 million euros to shareholders and sister companies. However, there is no justification for this.
Lack of transparency
The creditors also accuse the company of a “presumably deliberate” lack of transparency. They would not have received any essential information before the bankruptcy. The complaint was filed late last week on behalf of the investors by a Viennese law firm. The WKStA will now investigate the allegations and decide whether an investigation will actually be opened.
Signa Development is currently in a self-governance restructuring process (see video above). The website states that the company invests in “development projects in metropolitan areas, particularly in German-speaking countries and northern Italy.” “This includes office buildings and high-rise buildings, residential complexes, future-oriented retail spaces and hotels. The company follows a ‘buy-develop-sell’ strategy.”
300 million for real estate projects?
Apparently this didn’t work. Redevelopment Administrator Andrea Fruhstorfer said she had not received any criminal charges. She had also previously rejected reports of cash flows of around 300 million euros to investor René Benko or his companies. The money flowed into Signa’s real estate projects.
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.
