Kika/Leiner: Republic lawyer is dissatisfied with the Signa comparison

The fact that the former owner Signa of the real estate dealer Rene Benko only paid 20 million euros into the insolvency estate – including 5 million euros in a first step – is not enough for Peschorn. “The comparison is too small”he said.

The Republic of Austria did not agree to this settlement, but was outvoted by the majority of the members of the creditors’ committee. “With the support of a renowned international auditor, the administrator has identified several valuable claims totaling well over 20 million euros against various Signa companies and consultants”said Peschorn. “The settlement now decided is too small and the amounts do not reflect corporate responsibility.”

Peschorn further said: “It would have been appropriate for the Signa Group to pay a higher amount to settle these claims. With the approach of the insolvency proceedings, the efforts of the financial prosecutor to get the Signa Group to make an appropriate payment in the interests of the taxpayers were undermined.”

The fact that the Signa Group is allowed to repay the settlement amount in installments is also met with incomprehension by the Financial Procuratorate. The creditors would thus grant Benkos Signa a kind of credit and would also bear the risk that the installments would actually be paid. The Financial Procuratorate also spoke out against such a settlement with reference to the recommendations of the European Central Bank. “Based on the Signa Group’s public appearance, one should expect that it will be able to pay 20 million euros immediately. Otherwise you should really worry”said Peschorn.

The main creditor in the Kika/Leiner bankruptcy is the Republic as the furniture store has tax debts amounting to 46.5 million euros. In addition, there would be around 3.5 million euros from the Austrian Health Insurance Fund (ÖGK), 3.9 million euros from the Covid-19 Finance Agency and 12.1 million euros from landlords and banks. This adds up to claims amounting to 93 million euros, it calculates “Crown” this Wednesday.

Once the payment has been made, the comparison is legally effective. Next Monday (September 25th) the decisive renovation plan meeting for Kika/Leiner will take place at the St. Pölten regional court. The creditors still have to agree to the final restructuring plan proposal.