If these are rejected, then instead of the self-administered restructuring process, bankruptcy proceedings are planned. In both scenarios, not much will be left of the companies in the long term; all properties and projects will be sold.
The Signa series of bankruptcies is by far the largest insolvency in Austrian economic history. Creditors have registered record claims of around 10.8 billion euros once morest the insolvent luxury real estate company Signa Prime, of which only just under 3.1 billion euros have been recognized by the liquidator, according to the latest restructuring report. 2.3 billion euros in claims have been registered once morest Signa Development, of which 1.3 billion euros have been recognized so far. Signa Prime’s portfolio includes, for example, the Berlin luxury department store KaDeWe, the Selfridges in London and the Elbtower in Hamburg, which is currently at 100 of 245 meters construction height, and many other properties, such as the Goldenes Quartier and the Hotel Park Hyatt in Vienna as well as the Tyrol department store in Innsbruck. Signa Development develops real estate projects outside of the best locations in Austria and Germany as well as in South Tyrol.
According to the restructuring plan proposals from Signa Prime and Signa Development, creditors should receive at least 30 percent of their recognized claims within two years and all usable assets should be handed over to a trustee for realization or satisfaction of creditors. From the perspective of the insolvency administrators, the trust restructuring plans offered lead to a significantly higher quota expectation than in the break-up scenario and they therefore recommend that creditors accept the trust restructuring plans.
