What’s next in Signa Holding’s restructuring process?
In the next few weeks it will be decided whether the real estate and trading group will succeed in restructuring or whether it will slide into bankruptcy.
The parent company of the intricate Signa conglomerate wants to restructure itself under self-management.
Bild: picture alliance/dpa/Keystone
The Signa Holding of the Austrian real estate investor Rene Benko has suffered the largest insolvency in Austria to date with over €5 billion in debt. The parent company of the intricate conglomerate now wants to turn things around and restructure itself under self-management. According to Austrian law, creditors must receive a quota of at least 30%. This means the company would have to raise around €1.5 billion within two years. There must be clarity about this within 90 days of the opening of the proceedings. The next few weeks will be crucial as to whether the restructuring will succeed or whether Signa will slide into bankruptcy. Below is an overview of the next steps:
December 19, 2023
At the first creditors’ meeting on December 19th, the restructuring administrator Christof Stapf will give his assessment as to whether the financial plan presented by Signa will be adhered to and whether the restructuring plan is realistic. He also decides whether the company’s self-administration will be withdrawn. The management is currently continuing to work, but under the supervision of a restructuring manager appointed by the court. The court ultimately decides whether self-administration is withdrawn. The task of the restructuring administrator in the coming weeks is to check what the investments are worth and whether a quota of 30% is appropriate. Creditor protection associations describe it as a “Herculean task” to check the value of the hundreds of companies in the corporate network.
15 January 2024
Creditors have until January 15th to register their claims through the creditor protection associations. So far it is known that 273 creditors with total liabilities of around five billion euros are affected. How high the liabilities actually are will only be seen as the proceedings progress.
29 January 2024
At the so-called examination meeting on the occasion of the second creditors’ meeting, the registered claims are checked by the insolvency administrator for accuracy and either recognized or disputed.
February 12, 2024
The creditors vote on the restructuring plan. For acceptance, the majority of creditors (both in terms of heads and amounts) must agree to the application. If the restructuring process is successful, the remaining debts will be forgiven. If the plan fails, bankruptcy will result.
REUTERS
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2023-12-04 15:50:13
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