Signa insolvency: 11.7 billion euros! Luxury properties are for sale

Signa insolvency: 11.7 billion euros! Luxury properties are for sale

After the collapse of the Signa Group, international sales of luxury properties began in order to meet the enormous financial demands totaling 11.7 billion euros. This situation has led to the liquidation of the “Signa Prime” subgroup, which is scheduled to be completed by mid or end of 2026. This subgroup brings together numerous high-priced real estate projects, the sale of which is currently in full swing. According to information from oe24.at Of the unconditional claims amounting to 6.7 billion euros, 3.8 billion euros have already been recognized, while 2.9 billion euros are disputed. The situation is similar for the conditionally registered claims amounting to 4.5 billion euros: 1.1 billion euros have been recognized, while around 3.4 billion euros have been rejected.

A loan of 50 million euros was also repaid. To date, a net amount of 26.8 million euros has flowed into the insolvency estate, with 62.5 million euros coming from out-of-court settlements. There are currently 28 lawsuits pending at the Vienna Commercial Court, with a total amount in dispute of 199.6 million euros. The Abel law firm has fully examined the claims and expects lower repayments to creditors due to tax effects.

Sales projects and delayed processes

The sale process of Signa real estate has been delayed due to legal disputes over the nature of the procedure. A promising sales property is the 33-story Upper West high-rise in Germany, which is expected to be sold in December 2023. The Hotel Park Hyatt in Vienna is also scheduled to be sold by mid-2025. The completion of the exploitation process for the Renngasse Vienna building complex, which includes, among other things, the Constitutional Court and the Art Forum, is planned for the beginning of 2025.

The deadline for binding offers ends on December 6, 2023, although positive feedback has already led to a certain level of confidence that the contract will be signed soon. María Abel from the Abel law firm explained that the change from restructuring to bankruptcy proceedings at the Vienna Commercial Court was completed in October 2024 and the law firm is acting as insolvency administrator.

Legal challenges and market conditions

In October and November 2023, 16 challenges were filed with increased claims totaling 471 million euros, with the previous claims being 456 million euros. In addition, the fee payments to supervisory board members from 2023 are being challenged out of court, with the majority having initiated repayments. Despite these challenges, the turnaround in interest rates for commercial real estate has not brought about the hoped-for stabilization of the market.

The current sales processes include prestigious properties in Vienna and Innsbruck. In a process monitored by the Vienna Commercial Court, further liability letters will be sent to creditors in the second and third quarters of 2025 in order to create transparency and clarity about the repayments.

The size of the claims and the numerous legal disputes make it clear that the creditors are facing a long and complex recovery process. The Abel law firm will play a crucial role in the coming months in sorting out the claims and ensuring that the debts are reduced as orderly as possible.