On Friday, the Vienna Supreme Court accepted the complaint of the Republic of Austria and did not confirm the restructuring plan for Signa Development, which is currently being wound up.
This means that the creditors of the bankrupt subcomplex of René Benko’s corporate structure still have to wait for their money. “Until the current decision of the Vienna Supreme Court becomes final, the proceedings will be conducted as a restructuring procedure with self-administration,” said trustee Andrea Fruhstorfer in a press release on Friday.
Two weeks to file an objection
Signa Development’s continued existence will be “maintained,” von Fruhstorfer said. Signa Development can still challenge the OLG ruling at the Supreme Court. The company’s management now has two weeks to appeal.
Republic appealed the restructuring plan
In mid-March, the creditors approved the partial restructuring plan, but the Republic of Austria appealed shortly thereafter. Due to the confidence and the slower sales of real estate, the creditors expected higher proceeds from the liquidation of the real estate company than from bankruptcy. In May, the Finanzprokurator appealed against the confirmation of the commercial court.
Chief Financial Officer Wolfgang Peschorn had not approved the restructuring plan in March and instead called for bankruptcy to fully clarify the matter.
Central sub-company
Signa Development, which went bankrupt at the end of December 2023, was considered a central subsidiary in the Signa conglomerate alongside Signa Prime. Signa Development bundled a number of development projects from the integrated Benkos group of companies.
The Vienna Supreme Court has also annulled Signa Prime’s restructuring plan at the request of the Finanzprokurator, but the company is contesting the decision.
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.
