Real Estate Investor Klemens Hallman Files for Bankruptcy

The Viennese real estate entrepreneur Klemens Hallmann is insolvent. Due to the entrepreneurial activities of the debtor, a reorganization procedure with self-administration has been applied for at the Commercial Court of Vienna, and it is therefore not a debt settlement procedure (personal bankruptcy) sought by Hallmann, the Credit Protection Association (KSV) announced. The Hallmann Holding is not affected by the insolvency, the company emphasized on Tuesday.

"Toxic Market Environment" as Reason for Insolvency

Hallmann's goal is a reorganization procedure with self-administration and an offered quota of 30 percent. According to the documents currently available, 102 creditors with claims amounting to 95 million euros are affected by the insolvency. However, 75 million euros of this amount are attributable to guarantees, the Alpine Creditors Association (AKV) reported. Hallmann stated the assets at 5.865 million euros. These include, among other things, properties and company shares.

According to the Hallmann Group, the background of the application is a "currently exceptionally challenging and toxic market environment, which has led to significant economic burdens in recent months." The primary goal is to best protect the interests of the creditors. Existing assets are to be orderly sold within the framework of the regulatory procedure.

Developer Süba Already Insolvent Since April

On April 14 of this year, the Commercial Court of Vienna opened insolvency proceedings over the developer Süba AG of the real estate investor Hallmann. The liabilities are stated by the KSV to be around 226 million euros (liquidation values), while the assets are reported by the AKV to be just under 8.6 million euros.

(APA/Red)

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