At Signa Prime, Two Years of Board Minutes are Missing

At Signa Prime, Two Years of Board Minutes are Missing

Exorbitant Operating Expenses

Abel, upon assessing the “general operating costs” at Signa Prime, found them to be soaring above the industry average. He noted that the salaries, bonuses, and other additional benefits were exorbitantly high for a real estate group. Moreover, he claimed to have discovered an equity payment claim arising from a guarantee of 50 million euros to the “Benko Privatstiftung” and Signa Holding. Subsequently, he registered this claim against Signa Holding during its bankruptcy proceedings.

Absence of Immediate Payment Flow

Abel has since communicated with the board of directors of “Benko Privatstiftung”. However, due to the foundation’s insolvent holdings, he is not expecting any immediate cash flow. He plans to generate “substantial proceeds” from the sale of notable properties such as Goldenes Quartier, Park Hyatt, the Constitutional Court building, and the Tyrol department store. In fact, there are already potential buyers for several renowned properties located in Munich, Hamburg, Düsseldorf, and Frankfurt.

Despite these developments, the management is still fervently trying to raise a fresh capital of approximately 150 million euros, alongside the restructuring administrators. The primary aim of this capital raising is to rescue the valuable project companies in Germany from bankruptcy or to safeguard them against it. Abel says, “Discussions with potential lenders are already at an advanced stage, but the specifics are intricate and are yet to be concluded.” He still remains hopeful that the proposed restructuring plan, with a 30 percent quota, is achievable.

“From the perspective of bankruptcy law, the restructuring process with self-administration remains on course,” says Gerhard Weinhofer from Creditreform. “However, a conclusive evaluation of the success of the redevelopment can likely only be provided shortly before the redevelopment plan meeting, scheduled for March 18.”

Second Procedure

The restructuring process of Signa Development Selection AG witnessed the registration of claims amounting to 2.2 billion euros, out of which only 893 million euros were recognized. Weinhofer states, “The mass loan of 25 million euros has facilitated the stabilization of the property companies, paving the way for the structured and value-preserving sale of the properties.”

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