Bankruptcies

2.10.2024 12:13

(Akt. 2.10.2024 12:46)

Restructuring administrator Abel wants to send further legal challenges ©APA/EVA MANHART

The restructuring manager of the insolvent real estate company Signa Prime Selection (SPS) wants to reclaim around 456 million euros in payments that the company may have made unlawfully before the bankruptcy. This emerges from the fifth report by the restructuring administrator Norbert Abel, which was sent to the creditors and is available to the APA. Almost 15 million euros of these payments went to Signa Prime’s executive bodies and 39.6 million euros to shareholders.

A rough analysis up to September 30, 2024 identified 442 outgoing payments to 142 recipients that could be disputed. These could include unlawful bonus payments to board members or supervisory boards or dividends that were selectively paid out to individual shareholders, but also loans that were repaid when insolvency was already foreseeable.

Requests for repayments have already been sent and lawsuits are being prepared – further legal challenges are expected to be filed during October. In addition to examining and enforcing claims for rescission, liability claims (claims for damages) are also examined – however, longer limitation periods apply here, which is why claims for rescission are treated with priority.

At the end of July, the Vienna Higher Regional Court (OLG) overturned the restructuring plan for Signa Prime at the request of the Finanzprokuratur – which represents the legal interests of the Republic – which therefore appealed to the Supreme Court. The OGH ruling is expected at the end of the year. Until the Supreme Court decides, the SPS will continue to be in the restructuring process with self-administration, but its implementation will be delayed by legal uncertainty.

According to the updated financial plan, Signa Prime has sufficient liquidity to continue operating as part of the restructuring process: the first two tranches of the mass loan, each worth 25 million euros, have already been drawn down, as was reported at the end of July. The registered insolvency claims amount to 12.206 billion euros, of which 5.914 billion have already been recognized.

26.01.2024 15:34

(Akt. 26.01.2024 15:40)

Insolvency administrator: Mass loan approved by the supervisory board today ©APA/HARALD SCHNEIDER

The insolvent real estate project developer Signa Development receives a loan amounting to 25 million euros from a subsidiary of the Haselsteiner Familien-Privatstiftung. A bankruptcy loan has priority over the claims that were taken out before the bankruptcy was declared. The mass loan was approved today by the supervisory board of Signa Development Selection AG, said restructuring administrator Andrea Fruhstorfer in a press release on Friday.

According to the commercial register (“WirtschaftsCompass”), the Haselsteiner Family Private Foundation holds 9.2 percent of the real estate company. The creditors’ committee, represented by the creditor protection associations AKV, KSV and ÖVC as well as the Finanzprokuratur, assessed the liquidation loan positively. Signa Development co-owner Hans Peter Haselsteiner had already stated on ORF’s “ZIB2” on Wednesday that he would make up to 25 million euros available to the project developer company. Signa founder Benko and other Signa Development shareholders have not yet provided any fresh capital.

“The mass loan of 25 million euros was an important step towards further stabilizing the project companies in order to avoid emergency sales with significant loss of value,” said the Signa Development insolvency administrator. This would allow “unpaid payments to be made at the level of the project companies and ensure continued operations”.

In addition to Signa Development, the family foundation of Strabag founder Haselsteiner also holds a 15 percent stake in the insolvent Signa Holding. “I see myself as having a responsibility as a significant shareholder to minimize the damage to the company and the creditors,” said Haselsteiner, according to the broadcast, with regard to Signa Development. “The mass loan is intended to enable an orderly restructuring by the restructuring administrator and management in order to gain more time for better sales and thus for a higher repayment rate from creditors.”

A report in the “Financial Times/FT” caused a stir on Thursday, according to which Signa Development transferred more than 300 million euros last year to two companies close to Signa founder Rene Benko. Accordingly, Signa Development loaned 125 million euros to Laura Finance Holding GmbH and another 190 million euros to Laura Holding GmbH, writes the “FT”. At the end of 2023, Signa Development applied for restructuring proceedings under self-administration. The FT report does not say exactly when the money flowed.

The Signa Development restructuring manager has now commented on the “FT” report for the first time. “The accusation that payments were made from Signa Development Selection AG to Rene Benko or legal entities attributable to him immediately before the bankruptcy was declared is incorrect,” said Fruhstorfer. It is true that there are claims against related companies of the Signa Group. “According to the current survey, the rumored 300 million euros were used for Signa’s real estate projects. The claims will of course be examined and pursued by the restructuring administrator.” A detailed presentation of the offsetting relationships takes place as part of the reporting to the insolvency court and the creditors’ committee.

The domestic credit protectors are interested in the transactions. “Legal transactions that took place shortly before the insolvency and that reduced the insolvency measures can be reversed,” said Gerhard Weinhofer from the creditor protection association Creditreform to the “Kurier” (Friday edition). “As a rule, such a transaction can be challenged retroactively for up to one year.” We will look at these payments very closely, Weinhofer told the “Oberösterreichische Nachrichten” (Friday).

At the beginning of November 2023, the rating agency Fitch downgraded Signa Development to “high risk”. Fitch noted the “risk” that Signa Development channeled its own funds to other parts of the Signa Group. This can be seen from the increase in “other financial receivables”, which increased by 215 million euros in the first half of 2023. These are referred to in the semi-annual report as interest-bearing “loans to indirect shareholders”.

2024-01-27 00:35:39
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