First Vienna Hotel AG is Insolvent

On Monday, bankruptcy proceedings were opened over the assets of Erste Wiener Hotel AG, owner of part of the former Ringstraßengalerien complex in Vienna. The company is associated with the Saudi-Austrian investor Mohamed Bin Issa Al Jaber. The Grand Hotel at Kärntner Ring 9, which belongs to a subsidiary of Erste Wiener Hotel AG, is not affected by the insolvency, Al Jaber emphasizes in a separate statement.

Insolvency Proceedings Initiated by Creditor Application

According to AKV, the insolvency proceedings were initiated by a creditor application. There is currently no detailed information on the amount of liabilities or the number of affected creditors.

According to the owner, the insolvency is due to "structural financing issues" of the holding. The liabilities of Erste Wiener Hotel AG are reportedly less than half of the property's value. The goal is to settle these from the owner's side within a few weeks. The Grand Hotel and the attached shopping center Grand Palais are economically stable and not affected by the proceedings, and hotel operations will continue without restriction.

Stephan Riel has been appointed as the insolvency administrator. The registration deadline runs until July 1, and the examination hearing is scheduled for July 15.

(APA/Red)

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