Insolvency shock: Signa Holding before the financial collapse!

Insolvency shock: Signa Holding before the financial collapse!

6020 Innsbruck, Österreich - The bankruptcy of the Signa Holding, which is one of the most difficult in the history of the Austrian economy, raises numerous questions. The focus is on the Haselsteiner Family Privat Foundation led by Hans-Peter Haselsteiner, who should have invested 50 million euros in the René Benko, which has been in trouble. Many are wondering whether this payment obligation only existed on paper or whether it should actually have been realized, as krone.at reported.

The company has submitted an bankruptcy application to the Vienna Commercial Court after attempts to win additional investors. However, these efforts were unsuccessful. According to Leadersnet the sum of the debts is about 5.26 billion euros, whereby the assets are estimated at 2,78 billion euros. The reasons for the bankruptcy are, among other things, in considerable sales declines during the Covid 19 pandemic and increasing construction and financing costs. The lenders and creditors are concerned about possible domino effects because 273 creditors and 42 employees are affected.

complex structures and renovation plan

Signa Holding is directly involved in 36 corporations in Austria, and the corporate structure is also extremely complex, consisting of around 1,000 companies in different countries. The Credit Protection Association of 1870 warns that the value of the investments must now be checked by an insolvency administrator, which is referred to as the "Herculean task". In addition, the first creditor meeting will be held on December 19, 2023, while the deadline for registration of claims was set by January 15, 2024. The creditors should receive a repayment of 30 percent as part of a renovation plan that is to be paid out within two years of acceptance.

This situation could have serious effects on many companies active in Austria that are related to the Signa. The question remains whether the renovation initiated can be successful and whether further bankruptcy applications can be expected in the future. The promptly upcoming exchange about the progress of the renovation plan and the creditors' meetings will be decisive.