In recent news, financial prosecutor Peschorn has filed an appeal with the Vienna Higher Regional Court regarding the trust restructuring plans at Prime and Signa Development. Although the voting results were clear, with the majority of creditors approving the plans, Peschorn has raised concerns about their feasibility. He believes that the offered quotas may not be achievable and is seeking to clarify fundamental questions about the admissibility of the restructuring process.
Peschorn argues that all outstanding debts should have been paid or secured at the time of the vote on the restructuring plan. However, this was not always the case in some instances. Despite this, Peschorn prefers bankruptcy proceedings where the court, liquidator, and creditors’ committee have more authority. Some credit agencies supported the trust restructuring plan, while others voted against it, citing concerns about recovery timelines 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. They are confident that the Vienna Higher Regional Court will uphold the decision of the Vienna Commercial Court. However, there are differing opinions among creditors and experts about whether trust restructuring is a viable option for debt repayment or if bankruptcy proceedings would be better.
Overall, it seems that there is still uncertainty surrounding trust restructuring processes and their implications for both companies and investors alike. It will be interesting to see how this unfolds in court and what impact it will have on future debt management strategies.
