Drama surrounding the Signa Group: Critical situation after Benko's withdrawal and high risks for investors from Germany.

Drama surrounding the Signa Group: Critical situation after Benko's withdrawal and high risks for investors from Germany.

According to a report from www.capital.de, many state banks, insurers and the RAG Foundation are putting their money into the Signa real estate group. The latest developments surrounding founder René Benko have led to pressure from important investors, resulting in a new reorganizer taking charge. He now has to quickly find new money in order to make upcoming repayments and to stabilize the company, which is groaning under debt. Institutional investors from Germany are also affected because they not only hold loans but also shares in Signa companies. The situation at Signa remains unclear and investments in development projects in particular pose risks.

It is uncertain which direction Signa's restructuring will take. There are risks, particularly with regard to real estate projects with long terms and development projects, as the construction stop on the Elbtower shows. Representatives of banks and insurance companies involved in Signa are currently expressing cautious optimism about possible loan defaults, but the situation remains unstable.

Owners of insolvent subsidiaries, including R+V Versicherung and RAG-Stiftung, who can expect high losses, are particularly affected. Many of the financial deals were personally negotiated at top levels, which could also affect top managers of banks and insurance companies.

The Signa disaster could have further unpleasant consequences for investors and the companies involved, meaning that larger write-offs cannot be ruled out. It remains to be seen how Signa will develop further and what impact this will have on the market, consumers and the industries affected.