Shareholders Approve Restructuring Plan for Insolvent Signa Group Companies, Signa Prime and Signa Development

Shareholders have approved the restructuring plan for the insolvent companies of the Signa Group, Signa Prime, and Signa Development. This marks another step in the largest bankruptcy case in Austrian economic history, triggered by the financial difficulties of the real estate group led by René Benko. The plan stipulates that a trustee will sell the valuable properties of the group to satisfy creditor claims, with the aim of fulfilling at least 30 percent of the claims.

Among the prestigious properties of the group are the KaDeWe in Berlin, the Elbtower and the Alsterhaus in Hamburg, the Oberpollinger in Munich, and the luxury hotel Park Hyatt as well as the shopping district "Golden Quarter" in Vienna. Following the approval of the shareholders, the authorization of the Vienna Commercial Court is now expected, with the hope for a resolution by the end of June.

As part of the restructuring, prominent supervisory board members of both companies resign, including the former Austrian Chancellor Alfred Gusenbauer. In addition, the incumbent supervisory board members will not receive any remuneration for the fiscal year 2023. A newly elected supervisory board, consisting of experts but without prominent public figures, is now to appoint a new executive board. The appointment follows the resignation of the previous restructuring officer, Erhard Grossnigg.