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Creditors meeting on Monday  Sina cash injection from shareholders?  “Everything is still pending”

Creditors meeting on Monday Sina cash injection from shareholders? “Everything is still pending”

The first meeting of creditors of the two bankrupt real estate companies Cigna Prime and Cigna Development is eagerly awaited next Monday. As of Friday afternoon, there was no information on whether the €350 million demanded by Signa restructuring director Erhard Grossnig by January 15 from existing investors would be added. Without additional cash infusion, it appears that the restructuring process will be difficult to achieve.

So far, Signa shareholder Hans-Peter Hasselsteiner has publicly indicated that he might support a capital injection. “I can imagine subscribing to the revenue-sharing rights of Signa Prime until the money comes in and the renovation can be carried out under self-management in a way that preserves value,” Hasselsteiner recently told German newspaper Handelsblatt. These funds are intended to ensure restructuring procedures for Signa Prime and Signa Development in self-management and to avoid emergency sales. The amount of 350 million euros aims to support the two insolvent financial companies during the next three to four months. Signa founder Rene Benko has not yet commented on whether he will participate in the cash injection. In response to the APA's request on Friday, Haselsteiner said everything was still in limbo and that there had been no decisions yet on support.

Information about the status of the restructuring process

The creditors' meeting and reporting meeting for Signa Prime is scheduled for next Monday, January 15, at 1:00 pm at the Vienna Commercial Court, and for Signa Development at 3:00 pm. Signa Prime's Insolvency Director, Norbert Abel, and Signa Development's Restructuring Director, Andrea Frostorfer, will inform creditors on the status of the insolvency proceedings and the financial plan.

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Insolvency expert at the Alpine Creditors Association (AKV), Cornelia Wiesenauer, has high hopes for the two appointments on Monday, especially from the point of view of Signa Holding, she said in an interview with APA. Only when there is more clarity on how to proceed with things with Signa Prime and Signa Development, can the business continue even if Signa Holding goes bankrupt.

Many reports end up in the prosecutor's office

In order to raise funds for the continued existence of the holding company, the furniture of the Signa Holding headquarters in Vienna is currently being auctioned off. According to the Standard, some of the auction proceeds will go to Bella founder Karl Vlasik's foundation. Signa Holding is likely to have rent arrears with Wlaschek, as the private enterprise explained to the newspaper. Landlords have a lien on furnishings brought in by tenants, and “standard” refers to current law.

Meanwhile, the Public Prosecutor's Office for Economics and Corruption (WKStA) receives data on the facts of the case on a daily basis. “Many applications have already been received and more are being added regularly,” WKStA spokesman Rene Ruprecht confirmed to the Courier (Friday edition). A team of prosecutors and business experts has already been assembled who must examine the initial suspicions of each of Signa's ads. If this is confirmed, an investigation will be initiated. WKStA has not yet reached that point, the newspaper said.

More on Cigna's bankruptcy