Refurbishment plan for IMFARR: Creditor lean back - step to stabilize?

Refurbishment plan for IMFARR: Creditor lean back - step to stabilize?

The bankruptcy of the Viennese real estate developer Imfarr caused a sensation in the industry. On Thursday, October 17th, it was announced that the renovation plan presented for the company, which was broke in July, was largely accepted by the creditors by the Vienna Commerce Court. This is an important step because the real estate industry has suffered significant declines in recent years and now has to take a new direction.

Imfarr, under the direction of the Farrokhnia family, went into bankruptcy with 604 million euros, and the company was previously known for important real estate projects in Germany, especially in cities such as Munich and Frankfurt. The connections to politics were also particularly striking, for example the former Chancellor Werner Faymann (SPÖ) was on board as an investor from 2019 to mid -2022. It is noteworthy that the creditors have claimed a total of around 768 million euros, of which the insolvency administrator declared 573 million euros.

Details on the renovation plan

The refurbishment plan adopted stipulates that the creditors receive a quota of 20 percent on their claims, whereby five percent are immediately due as cash payment. The remaining 15 percent should be paid by June 30, 2025. This regulation could possibly give some creditors the opportunity to compensate for at least part of their losses. Jürgen Gebauer from KSV 1870 commented on the assumption of the plan and explained that this was a first important step towards successful renovation of the company. However, the final approval of the Vienna Commercial Court remains to be seen before the bankruptcy proceedings can continue.

The situation around IMFARR stands on behalf of the challenges with which many companies in the real estate industry are faced with, especially after the decline, which followed a decades of boom. While large actors such as the Signa empire have also stumbled, the assumption of the renovation plan shows that there are still ways of trying to return financially. A comprehensive overview of the current situation of the real estate developers and the developments around IMFART offers The report on www.meinbezirk.at .