2024-01-17 13:31:46
Signa restructuring board member Erhard Grossnigg is still looking for money to finance the real estate group’s numerous project companies. By Monday, Grossnigg had demanded around 350 million euros from existing investors in Signa Prime and Development, and by Tuesday, according to media reports, only 150 million euros. There was no interest in subordinated Signa profit participation certificates. “In my opinion, the topic is off the table,” said AKV credit protector Cornelia Wesenauer to the APA.
Signa Prime includes numerous well-known properties in city center locations, including the luxury department store KaDeWe in Berlin, the Postsparkasse, the Park Hyatt and the Goldenes Quartier in Vienna and the Hotel Bauer in Venice.
The prime project companies that are not yet insolvent – such as the Elbtower in Hamburg, the Lamarr in Vienna or the Waltherpark in Bolzano – need further financing to pay the companies operating there and to advance the projects. In many project companies the real estate is also parked. For insolvent real estate projects, only a lower sales price can be achieved. AKV insolvency expert Wesenauer expects that a mass loan for Signa Prime and Development to finance the project companies will now be negotiated. A bankruptcy loan has priority over the claims that were taken out before the bankruptcy was declared.
Since the existing investors have not yet provided the necessary cash injection, restructuring board member Grossnigg also wants to sell individual properties to finance the project companies. He announced this last Monday at the first creditors’ meeting of Signa Prime and Signa Development. Signa did not initially answer questions regarding the search for financing in response to an APA request on Wednesday.
The insolvent Signa Prime stock corporation has many subsidiaries and project companies that are not yet insolvent. The liabilities (liabilities) of Signa Prime Selection AG were around 4.5 billion euros when it filed for insolvency at the end of December. According to the consolidated financial statements, the financial liabilities of the entire Signa Prime Group amounted to 10.7 billion euros at the end of 2022. Signa Prime bonds were issued by our own companies in Vienna and Luxembourg. At the end of 2022, Prime Group bonds amounting to 1.3 billion euros were outstanding. The book value of the stock corporation’s assets was stated in the insolvency application at 1.3 billion euros.
For the Viennese construction expert and real estate appraiser Matthias Rant, the real estate appraisers involved are jointly responsible for the current Signa situation. “If they evaluate with carelessness, then they will share responsibility because their reports are the basis for the decisions of financiers,” said the chairman of the European expert association Euro Expert in the “Frankfurter Allgemeine Zeitung” (Tuesday edition). Banks and other lenders would rely on the valuation basis of real estate experts. “This will continue to concern the courts in the coming years. You also have to emphasize the speed of growth of this group. That means high risk,” said the expert.
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