What's next for Signa? Nervousness before crucial meetings

Nervousness is increasing ahead of the restructuring meetings of the large Signa companies Signa Prime (upscale properties) and Signa Development (construction projects) on Monday. Every two hours on Monday, the creditors at the Vienna Commercial Court will decide whether to sell the property via trust or liquidate it. The two insolvency administrators recommend the acceptance of the restructuring plan. According to the restructuring manager, in the best case the creditors will receive a quota of 32 percent, in the worst case it will be 5.5 percent.

The insolvency administrator of Signa Prime, Norbert Abel, suggests the trust solution to the creditors in his report. This would mean that the responsibility for the sale of the valuable real estate would not go back to the old management after the insolvency proceedings were completed, but rather the insolvency administrator would be appointed as trustee – and would sell off the real estate in the longer term. The proceeds from this would go to the creditors. We’re talking about another 20 percent – or more. This is based on realization by the end of 2025 – as well as a recovery in the market and therefore some potential for uncertainty.

The registered claims have increased from 6.4 to 10.8 billion euros over the past few weeks; 3.1 billion have been recognized.

Looking for majorities

The approval of the restructuring plan must be given by a majority of people and the amount of the claim. It is considered uncertain whether individual large creditors from abroad will follow the insolvency administrators.

If creditors do not approve the trust plan at Monday’s meeting, bankruptcy will occur. This applies to both Signa Prime and the real estate developer Signa Development.

Yesterday, the Munich public prosecutor’s office confirmed money laundering investigations into Signa companies. Investigations have been underway since the end of 2023 based on suspicious activity reports – against people, not against companies.

Sports check sold

The largest Italian sports retailer Cisalfa Sport was awarded the contract for SportScheck on Wednesday. The German sports retail chain was one of the Signa Empire’s first bankruptcies in November. Rene Benko received the dilapidated chain from Otto Versand in 2020.