A spectacular turnaround is looming in the bankrupt Signa Prime of financial juggler René Benko: previously the plan was to cheat creditors with a quota and keep the remaining luxury properties. According to information from “Krone”, the entire assets of Signa Prime, which went bankrupt at the end of December, will now be transferred to creditors and the proceeds from the sale will benefit them.
This means that existing shareholders are watching through their fingers. If real estate prices rise in the coming years, creditors will benefit. The planned construction: Over the next two years, the redevelopment manager will, as curator, ensure the controlled exploitation of the many prime objects at inner-city locations. Creditors therefore have the legitimate hope of receiving more than the 30 percent of their previously offered claims.
Recently there was fierce criticism of the previous approach to the billion-dollar bankruptcy. This included the planned package sale with the special properties Park Hyatt, Constitutional Court, Goldenes Quartier and Kaufhaus Tyrol, which was criticized as hasty. Criticism was also expressed about the fact that Benko and Haselsteiner’s confidants are still on Signa Prime’s board. And there is no real estate expert on the creditors committee.
There will be a new board of directors for real estate expertise
A new board member with high real estate expertise will soon be appointed. The current supervisory board must resign. The entire plan must be approved at a general meeting in April. It should be submitted to creditors in the coming days.
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.
