The restructuring proceedings with self-administration for Signa Holding GmbH were opened at the Commercial Court in Vienna on the evening of Nov. 29, 2023. According to the AKV creditor protection association, 42 service providers and 273 creditors are affected.
According to the application, the debtor has assets with a book value of around €2.77 billion. However, according to AKV, the so-called liquidation value is only around €314 million. Christof Stapf has been appointed liquidator, with Michael Neuhauser as his deputy.
The report published by the AKV creditor protection association on Dec.6 gave a first insight into the situation. In its balance sheets for 2020 and 2021, Signa Holding reported high profits of around €2 billion and €2.3 billion, respectively. In the balance sheet as of Dec. 31, 2022, it is notable that liabilities have increased from around €634 million to almost €2 billion. Nevertheless, a balance sheet profit of about €1.8 billion is still reported after financial assets (shares in affiliated companies, investments) are also said to have increased from around €4.5 billion to €5.2 billion.
It will be up to the restructuring administrator to check whether these balance sheet figures actually present a true and fair view of Signa Holding GmbH’s net assets, financial position and results of operations. This is particularly the case with regard to the devaluations now made in the asset status or insolvency application and the causes of insolvency stated therein (e.g., rising interest rates, inflation, increased construction costs with falling real estate prices, etc.), which date back to 2022.
In 2023, intra-group liabilities are expected to have increased again, to around €1.37 billion. In addition, liabilities of €1.83 billion reported in the asset status – which have not yet been recognized in the balance sheet – require further explanation. Including this item, total liabilities of around €5 billion are reported, of which €990 million is attributable to guarantees (contingent liabilities). At €5 billion, these are the highest liabilities in Austrian economic history.
AKV is offering to represent all creditors affected by this insolvency in the best possible way, to file their claims with the competent bankruptcy court and to report to them on the progress of the proceedings. The deadline for filing ends on Jan. 15, 2024. AKV would like to point out that the debtor company is to be continued and discharged from debt via a restructuring plan proposal, which provides for the insolvency creditors to receive a quota of 30 percent, payable within two years of acceptance of the restructuring plan.
