The troubled Austrian holding Signa fired its CEO on suspicion of violating official duties
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Austrian Signa Holding, which manages, among other things, the New York skyscraper Chrysler Building, as well as the German department stores KaDeWe and Galeria Kaufhof, fired CEO of two key divisions – Signa Prime Selection and Signa Development Selection – Timo Herzberg. As reported by Bloomberg, this decision was made due to suspicions that the top manager could have violated his official duties.
At the end of November Signa Holding filed to the Vienna Commercial Court filing for bankruptcy and starting the restructuring process. According to JPMorgan estimates, the company’s total debt exceeds €13 billion, and about 120 banks are its creditors in one way or another. Signa bankruptcy Maybe have a major impact on the European market. The company owns and operates many properties in different countries through trust structures.
According to Financial Times (FT), Signa has attracted funding not only from banks, but also from insurance companies such as Munich Re and Allianz. According to FT calculations, the Austrian company’s debt obligations to leading German insurers amount to about €3 billion, while about a third of this debt is unsecured.
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