Creditors could recover 32% of debt in Signa Prime restructuring plan, ET RealEstate

March 14, 2024

<p>Representative Image</p>
Representative Image

Creditors could recover 32% of their debt in insolvency proceedings for Signa Prime, a unit of the collapsed Austrian property group Signa, according to a report from restructuring administrator Norbert Abel seen by Reuters on Wednesday.

The calculation is based on a new plan, which creditors must vote on in a meeting scheduled for next Monday, and which foresees a trustee taking over the sale of Signa Prime’s assets.

Previously, Signa Prime had sought to administrate its own insolvency proceedings, with a legally set recovery quota of 30% for creditors.

The company faces bankruptcy if creditors do not agree to the new plan next week, which could lead to a far lower quota of 9%.

Signa Holding, the real estate empire founded by Rene Benko, declared insolvency in November, followed by other parts of the business, in the biggest casualty so far of the woes afflicting Europe’s property sector.

  • Published On Mar 14, 2024 at 06:30 PM IST

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