Image: (APA/AFP/JOE KLAMAR)
Accordingly, Signa Real Estate Management Germany filed an official application for bankruptcy at the Charlottenburg district court. This affects a German subsidiary of Signa Prime Selection, where company founder Rene Benko has collected his valuable existing properties. The APA has asked Signa and the office of Signa renovator Arndt Geiwitz for statements. At first there was no reaction to it.
The insolvency application, from which “News” and “Spiegel” quote, states, among other things: “Dear ladies and gentlemen, in our capacity as managing directors of Signa Real Estate Germany GmbH (…) we are applying for insolvency proceedings regarding the assets the applicant due to insolvency (…).”
“Applications in preparation”
Media reports had already shown that the financial situation of the Signa Group of Tyrolean investor René Benko was apparently deteriorating further. The German news magazine “Spiegel” reports online, with reference to insiders, that the situation at Signa Holding and its subsidiaries Prime and Development is “so critical” that “insolvency applications are being prepared” – the first application was made on Friday afternoon , writes the magazine.
Before the first insolvency in the Signa Empire, which had not yet been officially confirmed, was announced, a Signa spokesman told “Spiegel” and “News” that there were no new facts and that discussions were being held with potential financing partners.
According to the news magazine “News” (online edition), the motivation of the current Signa co-shareholders and investors is said to be limited to providing the intricate group of companies with fresh money. Many people were displeased that company founder Benko had not responded to their demands to withdraw completely from Signa and hand over his voting rights to the German reorganizer Arndt Geiwitz. The Signa Prime Selection supervisory board is now discussing the next steps, reports the German “WirtschaftsWoche” (online). Signa did not immediately respond to a written request.
“Der Standard” (online) writes that a kind of staff meeting is planned at Signa for Tuesday, in which information about the financial situation and further steps will be provided.
500 million euros by the end of the year
As already reported, a 200 million euro Signa bond is due at the end of November, according to “Handelsblatt”. According to “News” and “Spiegel”, the Signa Group must raise 500 million euros by the end of the year in order not to become insolvent.
Signa’s older consulting costs have now also become an issue in the media. According to the weekly magazine “News”, the former SPÖ Chancellor and Signa Prime supervisory board chairman Alfred Gusenbauer, who has been in office since 2010, is said to have billed Signa Holding for consulting fees amounting to over 7 million euros for the years 2020 to spring 2022. According to the magazine report, an invoice service description literally states that “in the restructuring and financing of the D18 package of the Galleria Kaufhof Karstadt group and when applying for a subordinated loan from the WST for GKK” (Galeria Kaufhof Karstadt, note) participated in an advisory capacity. In addition, Gusenbauer receives compensation as a member of the advisory board of Signa Holding and as chairman of the supervisory board and chief controller of Signa Prime Selection, Signa Development Selection and SIGNA RFR US Selection.
Construction sites are at a standstill
The construction site on Signa’s major Elbtower project in Hamburg has been at a standstill for a month due to unpaid invoices. “The construction work on the Elbtower is still stopped. We are currently assuming that this will not be resumed next week,” said the affected construction company Lupp in response to an APA request. We are waiting for “information from investors on how to proceed.”
Signa company founder Benko is currently trying to obtain additional financing. According to “Spiegel” and “News” he also puts works of art worth millions for sale. According to several insiders, the painting “L’Étreinte” by Pablo Picasso and a self-portrait from 1988 by the artist Jean-Michel Basquiat are to be monetized.
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