Mubadala Files €1 Billion Claim Against Signa, Profil Says

(Bloomberg) — Mubadala Investment Co. is seeking more than €1 billion ($1.1 billion) from troubled Austrian property and retail conglomerate Signa, including for the alleged violation of financial agreements, according to Profil magazine.

Companies affiliated with the Abu Dhabi sovereign wealth fund initiated two separate proceedings around the end of November, targeting several companies of the Signa group as well as its founder Rene Benko, the magazine said, citing a report from Signa Holding’s insolvency administrator Christof Stapf.

The legal filings highlight the challenge in keeping Signa in a self-administered restructuring, a form of insolvency that allows management to maintain some independence during an overhaul. It also shows growing pressure on investors to pursue their claims as the property empire that owns the Selfridges department store in London and Berlin’s KaDeWe seeks to avoid a financial meltdown.

Spokespeople for Signa Holding’s administrator and Mubadala declined to comment.

The company has until Feb. 12 to convince at least half of its creditors of a turnaround plan that would pay more than 30% of liabilities within two years. The claims are based on international commercial law and were made before the International Chamber of Commerce.

Shareholders across Signa companies include some of Europe’s wealthiest individuals, among them construction tycoon Hans Peter Haselsteiner and the German transportation magnate Klaus-Michael Kühne. Mubadala and Saudi Arabia’s Public Investment Fund have emerged as key investors, while banks have lent billions of euros for individual property projects.

–With assistance from Matthew Martin.

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