Signa Development files for insolvency with US$1.3 billion in debts
Signa Development, a key division of European property company Signa, filed for insolvency on Friday (Dec 29) in a Vienna court with debts of around US$1.28 billion, the KSV creditor protection association said.
Signa on Thursday had said that the development division, as well as its big business Signa Prime, would be filing for insolvency this week, in what was a significant twist in the unravelling of founder Rene Benko’s real estate empire.
Another division Signa Prime Selection filed for self-administrated restructuring in a Vienna court on Thursday,
Signa Development has 39 projects in the works, according to KSV. Projects are located in Vienna, Berlin, Wolfsburg, Germany, and elsewhere, according to Signa’s website.
The holding company of Signa – a group of some 1,000 companies, with high-profile projects and department stores across Germany, Austria and Switzerland – filed for insolvency last month with around 5 billion euros in debt.
Other divisions have since followed suit, making Signa the biggest casualty so far in Europe’s real estate crisis. REUTERS
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
China to cut mortgage interest rates, home down-payment ratio to boost demand
Chinese property developer Country Garden’s Hong Kong liquidation hearing adjourned
Condo rents fall again in April after slight recovery in March: SRX, 99.co
China regulators to discuss property aid with banks on May 17
China new home prices fall at fastest pace in over nine years
Country Garden to begin court battle against liquidation threat