Signa-Holding should prepare insolvency applications

2023-11-24 12:00:00

The news magazines “News” and “Spiegel” report online, with reference to insiders, that the situation at Signa Holding and its subsidiaries Prime and Development is “so critical” that “insolvency applications are being prepared.” A Signa spokesman told the two media outlets that there was no new situation and that discussions were being held with potential financing partners.

The Signa Prime Selection supervisory board is now discussing the next steps, reports “Wirtschaftswoche” (online). Signa did not initially respond to a written APA request.

As already reported, a 200 million euro Signa bond is due at the end of November, according to “Handelsblatt”. According to “News” and “Spiegel”, the Signa Group must raise 500 million euros by the end of the year in order not to become insolvent.

Signa’s older consulting costs have now also become an issue in the media. According to the weekly magazine “News”, the former SPÖ Chancellor and Signa Prime supervisory board chairman Alfred Gusenbauer, who has been in office since 2010, is said to have billed Signa Holding for consulting fees amounting to over 7 million euros for the years 2020 to spring 2022. According to the magazine report, an invoice service description literally states that “in the restructuring and financing of the D18 package of the Galleria Kaufhof Karstadt group and when applying for a subordinated loan from the WST for GKK” (Galeria Kaufhof Karstadt, note) participated in an advisory capacity. In addition, Gusenbauer receives compensation as a member of the advisory board of Signa Holding and as chairman of the supervisory board and chief controller of Signa Prime Selection, Signa Development Selection and SIGNA RFR US Selection.

The construction site on Signa’s major Elbtower project in Hamburg has been at a standstill for a month due to unpaid invoices. “The construction work on the Elbtower is still stopped. We are currently assuming that this will not be resumed next week,” said the affected construction company Lupp in response to an APA request. We are waiting for “information from investors on how to proceed.”

Signa company founder Benko is currently trying to obtain additional financing. According to “Spiegel” and “News” he also puts works of art worth millions for sale. According to several insiders, the painting “L’Étreinte” by Pablo Picasso and a self-portrait from 1988 by the artist Jean-Michel Basquiat are to be monetized.