Big cash injection

Signa Prime: 100 million euros from British fund

The insolvent Signa Prime has received a large financial injection from the UK.

(Bild: APA/AFP/Joe Klamar)

At least part of René Benko's troubled Signa Group has received a large financial injection. The insolvent Signa Prime is now to receive a loan of 100 million euros from the UK.

The money is to be used to secure the further liquidation of the ailing real estate company. The loan was granted to Signa Prime by the British private equity fund Attestor Limited.

"Stable basis" for restructuring plan
"This will significantly stabilize the company's liquidity with the aim of realizing the assets in a structured manner. The fiduciary restructuring plan accepted by the creditors in the course of the restructuring plan meeting on March 18, 2024 will thus have a stable financial basis," announced restructuring administrator Norbert Abel on Friday.

Insolvent Signa Prime receives a large financial injection from the UK.

(Bild: APA/AFP/Joe Klamar)

No junk sale of luxury real estate
The insolvent Prime urgently needs the money - above all to sell the luxury properties belonging to the group. In addition to the Goldenes Quartier in Vienna, this also includes the Tyrol department store in Innsbruck and the Elbtower in Hamburg.

Without the financial resources now available, there might have been distress sales and the properties would have changed hands for significantly less than their value. The money from the British is expected to flow as early as next week.

Who else will give Signa money?
But who is suddenly making so much money available to such an ailing group? The London-based investment company Attestor Limited made headlines a few years ago with its purchase of the airline Condor from the insolvent parent company Thomas Cook. Attestor also has a stake in car rental company Europcar and real estate such as the luxury Mandarin Hotel on Lake Como.

In Austria, Attestor has been involved in the restructuring of the formerly state-owned Kommunalkredit Austria AG, which had run into difficulties, as the second-largest shareholder since 2016. The sale of the bank was finally initiated in 2023.

"Asset manager with a long-term focus"
Attestor has repeatedly attracted attention for its investments in highly indebted companies. The company operates across all sectors - and is relatively unlimited in terms of the funds available. The company itself told krone.at that it sees itself as an "asset manager with a long-term focus" and that the unlimited term of the funds allows it to "invest in issues that take longer": "In such cases, investors often don't have the staying power for such proceedings." This is the reason why Attestor is often encountered in connection with insolvencies.

In the case of Signa, the money was made available for the liquidation of Prime and the loan against assets was covered by the company's assets - at a standard market interest rate. No details are available, as the contracting parties have agreed not to disclose the details. However, it can be assumed to be around ten percent.

According to its own information, Attestor, which was founded in 2012 by German investor Jan-Christoph Peters, manages assets worth seven billion euros.