The real estate development unit of the insolvent Signa Group is being wound up in bankruptcy proceedings.
The planned long-term sale of Signa Development Selection AG by a trustee was finally stopped by the Austrian Supreme Court, as the insolvency administrator announced.
Signa Development, together with the luxury real estate unit Signa Prime, formed the core of the Signa Group. The collapsed corporate network was set up by former billionaire René Benko during the low interest rate phase. Signa Development’s projects include the Zwei Hoch Fünf commercial and office building on Stuttgart’s Königstrasse.
Luxury real estate unit Signa Prime also went bankrupt
Originally, a majority of the creditors of Signa Prime and Development had decided to sell the portfolios over several years. The plan was to repay 30 percent of the debt.
But the lawyer for the Republic of Austria, which is also one of the creditors, advocated for faster processing. He therefore appealed against the plans – with success: Signa Prime was sent bankrupt in October. Now the Signa Development follows. This means that the targeted repayment rate is no longer applicable. (dpa)