(Bloomberg) — Signa’s flagship property unit is close to an agreement to sell a portfolio of luxury Austrian assets to Germany’s Schoeller Group, according to people familiar with the matter.
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A deal may help Signa Prime Selection AG resolve a deadlock in its broader restructuring related to a previous loan deal with Schoeller. It would also be the first major transaction with property held by Rene Benko’s troubled empire since its insolvency at the end of last year.
The family investment office of the packaging and logistics dynasty has emerged as the buyer of a portfolio of properties, which include the Golden Quarter luxury store complex and the Park Hyatt hotel in Vienna, three people familiar with the deal told Bloomberg.
Signa Prime Custodian Says Property Gems May Be Sold in Weeks
Representative for Signa Prime and its insolvency administrator declined to comment. The Schoeller Group didn’t respond to a call seeking comment.
While Signa Prime had initially attracted interest from 37 bidders for the assets, selling to the Schoeller Group may help resolve a standoff with the German industrialist family, two of the people said, asking not to be identified discussing private information.
The Schoeller Group and Signa’s representatives have been negotiating claims related to a €200 million ($219 million) loan deal signed last year, Bloomberg previously reported. Those claims – though questioned by the insolvency administrator – have been an obstacle to raising fresh funds as they are underpinned by a broad range of Signa’s German assets, limiting their sale.
Signa Prime’s Loan From German Family Stymies New Funding Effort
Signa Prime will present the potential deal to creditors for their approval in a meeting on Monday, two of the people said.
Efforts to present a viable restructuring plan are gaining traction ahead of a vote by creditors planned for next week. A majority of them need to sign off on a strategy that offers to pay back at least 30% of claims within two years.
Part of the plan may involve handing over the management and utilization of properties to a trustee, two of the people said.
(Adds details on Schoeller’s loan, restructuring plan from fifth paragraph)
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