European real estate giant Austrian Signa Group has filed for bankruptcy, foreign media reported on the 29th (local time).
Signa Group’s holding company is filing for bankruptcy protection following its German subsidiary, Deutsche Welle (DW) and others said.
“We apply to the Vienna Commercial Court in Austria on the 30th to initiate restructuring procedures through our own management,” Signa Holding GmbH said in a statement.
“Despite significant efforts in recent weeks, we have not secured enough liquidity for out-of-court restructuring,” the company said, explaining, “Signa Holding GmbH applies for restructuring procedures through its own management.”
The property company owns numerous commercial properties in Germany and Austria, including the iconic Chrysler Building in New York. It has subsidiaries in Austria, Germany, Italy, Luxembourg and Switzerland. According to the company’s website, it currently has assets worth 27 billion euros and development projects worth 25 billion euros.
However, the company has been in crisis in recent months as the Russia-Ukraine war has led to a significant increase in construction and energy and interest costs, DW said.
Development projects are said to be struggling in several cities, with the construction of a 64-story, 245-meter-high Elbtower in Hamburg, Germany, suspended due to financial problems with the company.
Signa Group owner Renee Venko announced earlier this month that he was stepping down as chairman of the Signa Advisory Council under pressure from shareholders.
JPMorgan estimated that Signa Group’s debt amounted to about 13 billion euros.