Signa Prime is sent bankrupt

Signa Prime is sent bankrupt

At the end of July, the Vienna Higher Regional Court (OLG) had already overturned the trust restructuring plan for Signa Prime at the request of the Finanzprokuratur, and now the Supreme Court (OGH) has also decided in favor of the Finanzprokuratur, which represents the legal interests of the Republic. Signa Prime’s assets will now be utilized by the liquidator in bankruptcy proceedings.

Creditors approved restructuring plan

The creditors had approved the restructuring plan, and according to the financial plan, Signa Prime has sufficient liquidity to continue operating as part of the restructuring process: The first two tranches of the bankruptcy 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 more than 12.2 billion. Euros, of which more than 5.9 billion were. Euro already recognized.

However, the plan was overturned by the Vienna Higher Regional Court at the request of Finanzprokuratur President Wolfgang Peschorn. The court justified this, among other things, by the fact that the fulfillment of the trust plan was “obviously not possible”. Peschorn expects bankruptcy proceedings instead of trust restructuring to provide more transparency in the processing and a better processing of Austria’s largest economic bankruptcy to date. Signa Prime fought this decision at the OGH, but the highest court has now also decided in favor of the Republic and has not upheld Signa Prime Selection AG’s appeal against the OLG’s decision. The Vienna Commercial Court and the insolvency administrator Norbert Abel announced this on Thursday.

The Vienna Commercial Court has therefore withdrawn self-administration and the restructuring proceedings have now become bankruptcy proceedings.

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**Interview with Wolfgang Peschorn, President of the Finanzprokuratur**

**Interviewer:** Thank you for ‌joining us‌ today, Mr. Peschorn. The recent ‍decisions made⁤ by the Vienna Higher ⁤Regional Court and ⁢the Supreme‍ Court ⁤regarding Signa Prime’s restructuring plan have crucial implications for ⁣creditors and the process ‌itself. Can you explain why⁢ the trust restructuring plan was overturned?

**Wolfgang ​Peschorn:** Thank you‌ for ⁢having me. The primary reason for overturning the⁢ trust restructuring plan was⁤ the court’s assessment that its fulfillment ⁢was ​“obviously​ not possible.” ⁣Given the ⁣scale of Signa Prime’s financial liabilities—over 12.2 billion euros in insolvency claims—there were significant concerns about‌ the viability of the plan. We felt that it was essential to prioritize transparency ⁣and efficiency in managing what is now Austria’s largest economic bankruptcy.

**Interviewer:** What are the main benefits of‍ transitioning from⁤ a trust⁤ restructuring to bankruptcy proceedings for ‍all parties involved?

**Wolfgang Peschorn:** Transitioning to bankruptcy proceedings allows for greater transparency in how assets ⁣and claims are managed. It ensures that all creditors‌ are treated fairly and that the process adheres to legal standards set forth in bankruptcy law.⁣ The involvement of ‌a ‌liquidator rather⁤ than a⁤ self-administration approach‍ generally⁤ allows for a more streamlined process, which ⁢is crucial​ in providing clarity to creditors.

**Interviewer:** The creditors had initially approved the restructuring plan. How do you think​ they ‌will react to this latest development?

**Wolfgang⁣ Peschorn:** While the decision may be disappointing to ⁢the creditors who supported the restructuring plan, it is essential⁤ to understand⁣ that the⁤ bankruptcy process ultimately aims to protect their interests. Our goal is to ensure that the creditors’ rights‌ are upheld and that they⁢ receive‌ as⁤ much‍ restitution as possible. The legal step we have‌ taken ‌is geared towards achieving that.

**Interviewer:** Can you outline the next steps in ⁢the bankruptcy proceedings, particularly concerning the ⁢liquidator’s role?

**Wolfgang Peschorn:** The liquidator, Norbert Abel,‍ will now take ⁣over the management of Signa Prime’s assets. His⁤ role will be to assess all claims, ⁣liquidate assets, and distribute‌ the proceeds to creditors in a fair manner. Our office will⁤ closely monitor the⁢ process to ensure accountability and transparency​ every step⁣ of the⁤ way.

**Interviewer:** Thank you ⁢for your insights, ​Mr. Peschorn. It’s a critical time⁤ for ‌all parties involved, and your ⁢expertise is invaluable as this​ situation unfolds.

**Wolfgang Peschorn:** Thank you for having me. Our ⁤primary focus will ‌always be‌ to protect public interests and⁣ ensure ​that this process is as equitable as possible for everyone affected.

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