Restructuring rejected

Next bankruptcy in the Signa house of cards is certain!

Next bankruptcy proceedings: This time it's Signa Development .(Bild: APA/Eva Manhart)

René Benko's house of cards is collapsing more and more. After Signa Prime, Signa Development is also being sent into bankruptcy. The Vienna Higher Regional Court had not confirmed the fiduciary restructuring plan accepted by the creditors.

As the Vienna Commercial Court announced on Monday, the Supreme Court did not uphold the appeals on points of law lodged by the debtor Signa Development Selection AG and a German insolvency administrator representing several creditors. 

Assets will be liquidated
A reorganization was not successful. The assets will now be liquidated by the insolvency administrator in bankruptcy proceedings.

The Commercial Court of Vienna will therefore withdraw self-administration in the near future and change the name of the proceedings to bankruptcy proceedings. At the beginning of August, the Vienna Higher Regional Court upheld the Republic of Austria's appeal against the trustee restructuring plan.

Notwithstanding the appeal on points of law, we have consistently continued all stabilization measures until today's decision by the Supreme Court and carefully prepared the structured liquidation of the assets.

Andrea Fruhstorfer, die bisherige Insolvenzverwalterin und nunmehrige Masseverwalterin

The previous insolvency administrator Andrea Fruhstorfer will be appointed as administrator. Signa Development will continue to operate under her supervision for the time being in order to "realize the company's assets in the best possible way", as Fruhstorfer said in a press release.

However, the liquidator said that the loss of trust among stakeholders and the loss of the tax group would make the liquidation much more difficult. "Regardless of the appeal on points of law, we have consistently continued all stabilization measures until today's decision by the Supreme Court and carefully prepared the structured liquidation of the assets," said Fruhstorfer.

"This is being done with the clear aim of ensuring the best possible satisfaction of creditors. Furthermore, "we will ensure the orderly and efficient liquidation of the insolvency estate and implement the upcoming tasks with commitment and determination".