Signa Sales to Hand Creditors Fraction of What They’re Owed (1)

Signa Prime Selection AG administrators expect to recover as little as €600 million ($631 million) from property sales, a fraction of recognized claims made against the luxury real estate unit whose founder Rene Benko faces mounting legal scrutiny.

Administrator Abel Rechtsanwaelte GmbH has so far recognized a total €3.8 billion of unconditional claims made against Signa, according to a Nov. 29 report seen by Bloomberg News.

Only €25 million has trickled through to creditors so far from sales related to a core group of properties in Germany and Italy, according to the report. After a sale, bank mortgages first need ...