Signa Prime insolvency

Insider fears “a pretty nasty number”

The Park Hyatt hotel in Vienna: One of Signa Prime's top properties

(Bild: APA/Georg Hochmuth)

Today, Monday, the Signa Prime Selection AG of financial juggler René Benko is set to make decisive decisions: From midday, a hearing will be held at the Commercial Court of Vienna to decide on the future of the insolvent company. Wolfgang Peschorn, who is representing the interests of the Republic of Austria as President of the Financial Procurator's Office, has already made it clear: He will not approve the restructuring plans.

As is well known, Signa Prime Selection AG bundles the top properties in city center locations. Finally, the following plan should be made palatable to creditors: They will receive a quota of 30 percent, which is to be serviced within two years. In addition, the assets of Signa Prime will be handed over to the restructuring administrator as trustee so that the properties can be realized without time pressure during these two years.

The Park Hyatt Hotel in Vienna: One of Signa Prime's top properties

(Bild: APA/Georg Hochmuth)

The planned deal
However, a subsidiary of the insolvent Signa Prime Selection AG, specifically Signa Prime Assets GmbH, is at loggerheads. As recently as June 2023, the German Schoeller Group provided a Signa Prime subsidiary with EUR 200 million secured by extensive liens. Schoeller now wants to take over Signa Prime Assets GmbH, which owns the Vienna Park Hyatt, the Constitutional Court, the Goldenes Quartier and the Tyrol department store. Schoeller is offering the 200 million already borrowed (or the release of the pledges) - plus a premium. However, some creditors rejected this plan last week because they lacked transparency on the question of why this deal was "without alternative".

Will there beanother attempt?
Experts familiar with the situation do not rule out that another attempt will be made today at the commercial court to pass Signa Prime Assets GmbH on to the Schoeller Group. This is a "pretty nasty business", as one insider puts it, who even fears that the creditors "could end up losing out on a three-digit million amount" if this plan with the four known properties is pushed through after all. The question also arises as to whether Benko's Liechtenstein foundation Ingbe could also benefit from such a deal in the end. Ingbe had also granted Signa Prime and Signa Prime Assets a 150 million euro loan in 2023.

René Benko and Christoph Schoeller maintain very close contact, which is likely to date back to 2011. At that time, the first attempt was made to enter the German retail business.