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Doubts about money flow at Cigna

Doubts about money flow at Cigna

RThe bankruptcy of Cigna, which specializes in real estate and retail, raises questions about the large cash flows before the collapse. Last week, a group of international institutional investors filed a lawsuit against the development subsidiary Signa Development with the Public Prosecutor's Office for Economics and Corruption (WKStA) in Vienna. WKStA confirmed a similar report in the Financial Times. A FAZ spokeswoman said there were now several reports surrounding Signa which were being examined to see if there was initial suspicion.

Creditors accuse the company of conducting illegal transactions before filing for bankruptcy on December 29. In their view, there was a significant asset outflow of more than €662 million from Signa Development to (indirect) shareholders and subsidiaries. The creditors explained in a comprehensive statement that there is no economic or operational justification for this transfer. The complaint accuses the company of a deliberate lack of transparency before the insolvency occurred, and no basic information was disclosed to creditors.

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