Two key Signa divisions filing for insolvency
TWO key divisions of Signa, the troubled European property company, are filing for insolvency, the company said on Thursday (Dec 28).
It was the latest twist in the saga around Signa, the biggest casualty so far of Europe’s real estate crisis.
The division Signa Prime Selection filed for self-administrated restructuring in a Vienna court on Thursday, and Signa Development Selection will file on Friday, Signa said.
“It is well known that external factors have had a negative impact on business development in the real estate sector in recent months,” it said.
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 five billion euros (S$7.3 billion) in debt.
Prime Selection is Signa’s largest real estate division with assets valued at 20.4 billion euros, according to its website. Holdings include the Park Hyatt in Vienna and the Elbtower in Hamburg, where construction has been halted.
Development Selection, with new projects in the works in Vienna, Berlin, and Wolfsburg, Germany, has a balance sheet of 4.6 billion euros, according to Signa’s website. REUTERS
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