Image: APA/GEORG HOCHMUTH
After Signa Holding and yesterday the flagship, Prime, filed for bankruptcy, Development also did so on Friday morning, according to AKV, KSV1870 and Creditreform. All three are aiming for a restructuring with self-administration; the quota for the creditors should be 30 percent. According to current information, development’s over-indebtedness amounts to around 1 billion euros.
Signa Development was founded in 2014 and deals with the development of real estate projects. It is based in Innsbruck. The gross asset value (GAV) was around 2.8 billion euros at the end of 2022, according to Gerhard Weinhofer from Creditreform. The highlights included properties such as the Vienna Twentytwo, the Donaumarina Tower, the Andaz Vienna am Belvedere, the Berliner Bremsenwerk and the Flüggerhöfe in Hamburg. The real estate portfolio includes a total of 39 projects and the company has direct and indirect interests in 290 companies.
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Around 200 creditors and 13 employees are affected. The assets of 296,336,000 would be offset by liabilities of 1,271,930,000. The stagnating real estate market and rising costs and interest rates are cited as reasons for the insolvency, according to Creditreform.
Yesterday morning Signa announced Prime’s insolvency. Creditors can therefore register their claims until February 14, 2024. The lawyer Norbert Abel was appointed as insolvency administrator. The liabilities are 4.5 billion euros. The first creditors’ meeting and reporting meeting was scheduled for January 15, 2024.
According to KSV, 2.3 billion euros of the liabilities are likely to be group liabilities. According to consistent information from the creditor protectors, the assets are around 1.3 billion euros. A good 350 creditors and 28 employees are affected. The company’s existing properties, among other things, are likely to be exploited as part of the process. In the short term, Prime needs bridging financing of between 300 and 500 million euros, writes the KSV.
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