In the Benko/Signa case, Wolfgang Peschorn, the President of the Financial Prosecution Service, achieved an important success.
In mid-May, the Republic’s lawyer filed an appeal against the restructuring plan and the trust solution with the main group company, Signa Prime. The Vienna Supreme Court has now decided that the restructuring plan will not be confirmed.
Signa’s restructuring plan has been temporarily shelved
Briefly about the background: In March, the majority of Signa Prime’s creditors approved the restructuring plan. Peschorn, as representative of the Republic of Austria and thus of the taxpayer, was already against it at that time. However, the Vienna Commercial Court initially confirmed the restructuring plan.
However, after appealing this judicial decision in mid-May, the Vienna Supreme Court has in the second instance annulled this confirmation. This means: Signa Prime’s restructuring plan will not be approved by the court. The Supreme Court would now have the final say.
More light in the darkness
Since the collapse of the Benko Group, Peschorn has been adamant that the opaque Signa construction must be destroyed and that the events before the declaration of bankruptcy must be investigated down to the last dark corner. This would be regulated by law in the event of a break-up and would be the result of today’s ruling by the Vienna Supreme Court.
Millions in fees tied to court confirmation
Today’s decision by the Vienna Supreme Court would not only have drastic consequences for Benko and his managers if it is confirmed by the Supreme Court: the restructuring manager’s fee of a sensational €22 million is linked to the confirmation by the court. According to recent developments, this is up in the air.
The trustee said on Monday: “Until the current decision of the Vienna Supreme Court becomes final, the proceedings will continue as a self-governed restructuring procedure.”
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.
