Today, Tuesday, at 1 p.m. the time has come. The creditors’ meeting of the insolvent Signa Holding takes place. Creditor representatives hope to receive valuable information on how the restructuring process will proceed.
The Vienna Commercial Court has now also set up a creditors’ committee. The Alpine Creditors Association (AKV) announced this on Monday. The creditor protection associations had previously advocated for such a committee, as this would make it easier to clarify many uncertainties regarding liabilities, the restructuring plan and the next steps.
to create transparency
From the AKV’s point of view, the establishment of the committee is “necessary and expedient”. The opaque structures of the Signa Group would have to be addressed as quickly as possible with a view to the intended restructuring within just 90 days. This is the only way to get an overview and decide on the appropriateness and feasibility of the restructuring plan offered by Signa.
When it filed for bankruptcy, Signa Holding reported liabilities of around five billion euros. The company offers a renovation rate of 30 percent within two years. So far, claims totaling 1.13 billion euros have been registered.
Signa will not be deprived of self-administration in the restructuring process, “as this currently does not represent a disadvantage for the creditors,” writes the AKV in advance information on the creditors’ meeting. Cooperation with the debtor runs smoothly and all necessary information is provided. After the closure of non-essential parts of Signa Holding, eight of the 42 employees are still working.
The Signa bankruptcy might cost the Swiss private bank Julius Baer significantly more money than the asset manager has previously made provisions for. “We have increased our expectation for credit losses to 400 million francs,” said analyst Michael Klien from Zürcher Kantonalbank (ZKB). A spokeswoman for Julius Baer declined to comment. The bank announced a value adjustment of around 70 million on its loan portfolio in November and shortly followingwards admitted a credit risk of 606 million francs to an undisclosed group of companies. According to insiders it is Signa.
Image: MICHAEL BUHOLZER (X90139)
The real estate loans are secured by several packages consisting of commercial and luxury retail properties, Julius Baer said in November. The commitment will be “restructured in the long term”.
Julius Baer is one of the largest lenders to the Tyrolean investor Rene Benko’s real estate group. Around 120 banks are said to have lent money to Signa.
