Signa Pushed Into Liquidation as Court Rejects Restructuring

Austria’s top court ruled that a restructuring plan put forward by Signa Prime Selection AG and its creditors was unlawful, pushing the luxury landlord into bankruptcy.

The Supreme Court verdict follows a months-long court battle over the restructuring agreement adopted in March by creditors of the flagship unit in tycoon Rene Benko’s erstwhile conglomerate.

The plan aimed to pay creditors 30% of their claims by appointing a trustee to manage a protracted sale of assets, benefiting from an anticipated recovery in market valuations.

But Austria’s Finanzprokuratur, an agency that acts as the government’s legal representative in civil proceedings, ...