Image: HELMUT FOHRINGER (APA)
“Der Spiegel” reported this on Friday, citing people familiar with the matter. A bankruptcy filing is expected within the next two weeks. Signa was initially unreachable for the APA.
According to insiders, Signa Prime’s management is preparing for self-administration insolvency, according to “Spiegel”. We are currently working hard on a restructuring plan that will convince the court of this form of insolvency. It is hoped that this could save assets, the report says. The more assets are retained, the more likely it is that the holding company will survive the insolvency proceedings. However, it is unclear whether the plan will work.
The liabilities of the parent company Signa Holding were estimated at 5 billion euros at the time of the insolvency application; at the end of 2022 they were still just under 2 billion euros. The reason for the difference is the holding company’s liability commitments for subsidiaries, which now have to be taken into account. “This is having an upward impact,” an insider told “Spiegel”. The value of the holding’s assets also raises questions. Calculated at 6.1 billion euros at the end of 2022, the insolvency application at the end of September only showed 2.8 billion euros. Not only has the value of the large corporate subsidiaries fallen, but also that of unspecified “affiliated companies”.
More on the subject:
- Benko’s empire is falling apart: three other German Signa companies are insolvent
- René Benko has been removed from the Forbes billionaires list
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