Austria

Insolvent European property company Signa is holding talks to potentially sell its stake in New York's Chrysler Building and is shedding its private jet, its administrator said on Tuesday, a significant development in the salvaging of founder Rene Benko's real estate empire, Reuters reported. The efforts, announced to Signa's creditors in Vienna, mark a first update by the court-appointed insolvency administrator on plans for Signa, the biggest casualty so far of Europe's property crisis.

An insolvency filing by Signa Holding shines some light on the complex dealings of the umbrella organization of Rene Benko’s property and retail empire. The court application, seen by Bloomberg, includes a preliminary list of creditors, offering a glimpse of an operation that lured high-profile investors as it lapped up trophy assets like New York’s Chrysler Building, Selfridges department store in London and Berlin’s KaDeWe.

Austrian tycoon Rene Benko’s Signa filed for insolvency after a last-ditch attempt to raise emergency funding failed, making the co-owner of New York’s Chrysler building one of the most prominent casualties of Europe’s property crisis, Bloomberg News reported. The filing is a bitter blow for the self-made mogul, who was known to boast that only the British royal family and the Catholic church could rival his array of exclusive properties.

Austrian property group Signa could see more of its units file for insolvency as soon as this week as the real estate empire is running out of cash, people with direct knowledge of the matter said on Monday, Reuters reported. The group, controlled by an Austrian magnate but whose business is anchored in Germany, held talks with Elliott Investment Management to try to raise funds, according to one of the people, describing the company's scramble for cash.

Banks in Austria had 2.2 billion euros ($2.35 billion) in exposure in mid-2023 to indebted property and retail giant Signa Group, owner of New York's Chrysler Building and Britain's Selfridges store, Reuters reported. Raiffeisen Bank International (RBI) (RBIV.VI) and UniCredit's (CRDI.MI) Bank Austria accounted for two-thirds of this, said the person, who spoke on condition of anonymity. The exposures, which have not been previously reported, shed some light on the financial links of Signa, which has been a major player in Europe's property industry for more than two decades.

The government of Austria presented a series of measures Wednesday to counter the impact of inflation, including a three-year cap on rent increases for many apartments and a freeze on fees to use highways, the Associated Press reported. The package foresees a 5% cap on annual rent increases in 2024-2026 even if inflation is higher than that. According to the government, the cap will prevent hikes of some 15% next year in some public housing.

Austria’s largest insolvency in a decade is turning into a race for workers from companies desperate to fill open jobs, Bloomberg News reported. Retailers, banks, insurers, the postal service and even the country’s tiny military have offered to take some of the 1,034 workers initially set to be laid off from furniture chain Kika/Leiner. The bankrupt firm is itself organizing a jobs fair to aid the process.

Clovis Oncology has agreed to sell its approved cancer drug Rubraca to a privately held Austrian company as part of an auction associated with its ongoing bankruptcy proceedings, BioPharmaDive reported. Pharma& Schwiez submitted the highest bid at the auction, according to a regulatory filing, and will pay $70 million upfront for rights to Rubraca, which is approved in the U.S. for prostate and ovarian cancers. The company could pay another $65 million if certain regulatory and sales milestones are later met. The sale is subject to approval by the U.S.

Russian natural gas deliveries to Austria are continuing unrestricted and there is no indication that will change, its government said on Wednesday while adding it is scrambling to find alternative sources, Reuters reported. Austria obtains 80% of its natural gas from Russia, a heavy dependency that it says will take time to end now that Russia's invasion of Ukraine has made plain the need to shift away from Europe's cheapest source of gas. "Since the start of the war delivery volumes have not changed. In fact, they have increased," Austrian Chancellor Karl Nehammer told a news conference.