Austria’s Signa gets 100 million euro loan from Attestor

(Reuters) – British investment fund Attestor Ltd. has granted Signa’s Prime unit a loan of up to 100 million euros ($108 million) to boost the liquidity of the insolvent Austrian property company, restructuring administrator Norbert Abel said on Friday.

“This allows the company’s liquidity to be stabilised considerably with the aim of salvaging the assets in a structured manner,” Abel said in a statement, noting the parties involved were keeping details of the loan confidential.

The cash injection should help the company to dispose of assets in a more orderly fashion.

Signa, the property empire founded by tycoon Rene Benko, has been one of the biggest casualties of Europe’s real estate crisis, with creditors filing claims worth billions of euros.

The group’s holding company, which sits at the centre of a web of hundreds of firms, has declared insolvency, as have its two main units, Signa Prime and Signa Development.

Signa Prime holds some of the group’s best-known assets such as department stores KaDeWe in Berlin, Alsterhaus in Hamburg, Oberpollinger in Munich, and Vienna’s Park Hyatt luxury hotel.

($1 = 0.9264 euros)

(Reporting by Rene Wagner; Editing by Kirsten Donovan)


Close Bitnami banner