Financial prosecutor Peschorn has filed an appeal with the Vienna Higher Regional Court, raising concerns about the restructuring plans at Prime and Signa Development. Although both companies received majority approval from their creditors for their respective plans, Peschorn believes that the quotas may not be achievable. He argues that all outstanding debts should have been paid or secured before the vote on the restructuring plan was taken, which was not always the case.
Peschorn’s appeal is aimed at clarifying fundamental questions about the admissibility of the restructuring process. Despite his concerns, some credit agencies supported the trust restructuring plan, while others voted against it, citing recovery timeline and court involvement issues.
Signa Development’s management views 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 the implications of trust restructuring.
In conclusion, while trust restructuring may seem like a viable solution for struggling companies, it is not without controversy. Financial prosecutor Peschorn raises valid concerns about ensuring that outstanding debts are paid or secured before any changes are made to a company’s financial structure. Ultimately, it will be up to judges and other legal bodies to weigh these concerns against potential benefits before approving any trust restructuring plans.