Peshorn on Cigna's decision: 'This is the ultimate penalty'

Chief financial prosecutor Wolfgang Peschorn has achieved a partial victory in the most important of Signa's insolvency cases. “This is, so to speak, the ultimate punishment for those who pursued these restructuring plans and claimed that creditors could get more through this and the so-called trust solution than they would get in bankruptcy proceedings,” Peschorn told the “Oberösterreichische Nachrichten” (ON).

While creditors in Signa Prime and Signa Development were in favour of restructuring proceedings, Peschhorn was in favour of bankruptcy proceedings. The Vienna Higher Regional Court upheld Peschhorn’s appeal in the Signa Prime case, and the previous week also in the Signa Development case.

The court also declined to confirm Signa Development’s restructuring plan, including the dissolution of the trust. The result will be the bankruptcy proceedings sought by Peshorn. However, the decision is not yet legally binding. Signa Development can appeal the decision to the Supreme Court – just as Signa Prime has already done.

The court justified the decision in the Signa Development case, as well as in the Signa Prime case, by saying, among other things, that the restructuring plan was not feasible.

“This approach has so far prevented the transparent treatment of pre-insolvency events in bankruptcy proceedings,” Peshorn told OÖN. The chief attorney of the republic called for a full clarification of all the events surrounding the $1 billion bankruptcy of Signa. In his opinion, this is only possible in bankruptcy proceedings.