Further bankruptcies are looming in the ailing real estate and trading group Signa owned by the Austrian investor René Benko. This emerges from a statement from Signa Development Finance in Luxembourg. “Application to open insolvency proceedings for Signa Development Group companies is mostly likely,” she announced on Friday evening.
Signa Development Selection AG is one of the most important companies in the group. According to its website, it invested in real estate development projects “in good locations, away from premium city center locations.” The balance sheet total is stated on the website as 4.6 billion euros. Signa Holding and some smaller subsidiaries had already filed for bankruptcy.
Signa Development Finance is the issuer of a 300 million euro bond, she said. Signa Development Selection AG is the guarantor of the bond. Due to the liquidity situation of Signa Development Selection AG and its group companies, it appears “currently mostly likely” that the issuer, Signa Development and other companies in the Signa Development group “will file an application to open insolvency proceedings in the very near future.” (dpa)