Vienna Higher Regional Court Examines Admissibility of Trust Restructuring Plan at Prime and Signa Development Companies

Financial prosecutor Peschorn has lodged an appeal with the Vienna Higher Regional Court, expressing concerns about the admissibility of the restructuring process at Prime and Signa Development. While both companies received majority approval for their trust restructuring plans on March 18, Peschorn believes that the offered quotas may not be achievable. He argues that all outstanding debts should have been paid or secured at the time of the vote on the restructuring plan, which was not always the case.

Peschorn prefers bankruptcy proceedings over trust restructuring, where the court, liquidator, and creditors’ committee have more authority. While some credit agencies supported the trust restructuring plan, others voted against it, citing concerns about the recovery timeline and lack of involvement from the court in the process. Signa Development’s management sees Peschorn’s appeal as an attempt to sabotage their approved restructuring plans and believes that they will be upheld by the Vienna Higher Regional Court.

Despite differing opinions among creditors and experts about trust restructuring process and its implications, both companies remain confident in their ability to implement their plans successfully.