Singa, Austria's largest real estate firm, declares bankruptcy intentions
(MENAFN) Austria's largest real estate company, Singa, declared its intention to file for bankruptcy on Wednesday, marking a significant development in the country's real estate sector. In a statement, the company revealed its plan to initiate administrative procedures before a court in Vienna with the objective of formalizing the bankruptcy declaration.
As reported by Bloomberg, Singa is set to submit a request seeking approval for a comprehensive reorganization plan. The company emphasized in its statement that the primary aim is to sustain business operations through self-management and the implementation of a viable restructuring strategy.
The adverse impact on the European real estate sector, stemming from the most substantial increase in borrowing costs in the euro's approximately 25-year history, has taken a toll on Singa. The company, which stands as Austria's largest real estate entity, found itself grappling with the repercussions of these challenges.
Additionally, Singa faced the obstacle of securing a substantial financial injection of 600 million euros (equivalent to approximately 658.5 million dollars) needed in the coming weeks. Bloomberg's report indicated that the company was unable to secure this critical funding, contributing to the decision to pursue bankruptcy proceedings.
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