Signa Development Files for Bankruptcy with $1.3 Billion in Debt – KSV By Reuters
© Reuters. File photo: Signa Holding’s sign rests on a crane next to a construction site in Vienna, Austria, December 19, 2023. REUTERS/Lisa Leutner/File Photo
FRANKFURT (Reuters) – Signa Development, the main division of European real estate company Signa, filed for bankruptcy in a Vienna court on Friday with debts of about 1.16 billion euros ($1.28 billion), the KSV creditor protection association said.
Signa said Thursday that its development arm and its conglomerate, Signa Prime, will file for bankruptcy this week, a significant development in the breakup of founder Rene Benko’s real estate empire.
According to KSV, Signa Development has 39 projects underway. According to Signa’s website, the projects are located in Vienna, Berlin, Wolfsburg, Germany and other locations.
Signa’s holding company, which consists of about 1,000 companies that operate high-profile projects and department stores across Germany, Austria and Switzerland, filed for bankruptcy last month with debts of about 5 billion euros.
Other divisions followed suit, making Signa the company hit hardest by the European real estate crisis so far.
(1 dollar = 0.9030 euros)
