A newspaper copy of an advertisement of a Vienna law firm. Creditors allege: Cigna Development engaged in “illegal transactions” before filing for bankruptcy on Dec. 29. Accordingly, the lenders are said to have “identified a significant outflow of assets of more than 662 million euros from Cigna Development to (indirect) shareholders and sister companies.”
A process that lacks economic and operational justification, as the lenders explained in a 22-page report. Cigna Development is responsible for the development and sale of large real estate projects.
“Perhaps a deliberate lack of transparency”
According to the FT, the complaint alleges that the company “perceived a willful lack of transparency” before the bankruptcy and that no essential information was disclosed to creditors. Lenders fear a total loss of invested money.
Erhard Krasnick, the Cigna Development board member responsible for restructuring the company, declined to comment on the allegations made by creditors. The restoration administrator was not aware of the complaint and was not contacted. “We do not know if the authorities will open further investigations,” Cigna's press office said on Monday.
The puzzle is about 300 million euros
“FT” reported on two transactions at the end of January. 300 million euros were transferred from Cigna Development to two companies associated with Benco's foundation.
Restructuring executive Andrea Frusdorfer denied any payments to Cigna founder Benco or legal entities attributed to him: Allegation that funds were transferred to Benco is “false”. Still, there are claims against “companies close to Cigna Group,” Fruhstorfer said.
However, he pointed out that all payment flows are currently being verified, but “the process will still take time”. On the other hand, the lenders have mentioned the conditions under which money can flow to certain companies in their report.
WKStA investigates initial doubts
In an investigation by the “FT”, the WKStA noted several criminal complaints regarding Cigna. However, it is yet to be decided whether a criminal investigation will be initiated in the case. The allegations are still under investigation. Cigna Development is currently in the process of restructuring with self-management.
