In the ongoing insolvency proceedings of Austrian furniture retailer Kika/Leiner, administrator Volker Leitner has recognised claims totalling 63 million euros. Approximately 2,400 creditors have so far registered claims amounting to 316 million euros.
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Following its bankruptcy filing, Kika/Leiner closed its remaining 17 locations in Austria in January, affecting 1,350 employees. Workers with longer notice periods will continue receiving salaries until the summer. According to the GPA union, around two-thirds of employees had been with the company for over five years. Employee claims from recent terminations have not yet been included, meaning total liabilities are expected to rise.
The insolvency administrator has disputed claims from the Supernova Group, the landlord of Kika/Leiner's stores, which is seeking around 190 million euros in compensation for premature lease terminations. 'Intensive negotiations are already underway with the Supernova Group to reach an out-of-court solution,' stated the Credit Protection Association KSV1870. The Republic of Austria is also a major creditor, with claims amounting to 29 million euros. Additionally, 1,260 customers have submitted claims as advance payment creditors. Disputed claimants may provide further documentation or file a declaratory action within the court-mandated three-month dispute period.
The final amount creditors will recover remains uncertain. However, Karl-Heinz Götze of KSV1870 indicated that 'it is not unrealistic that creditors will receive a quota payment at least in the lower double-digit percentage range' when proceedings conclude.
Source: www.vol.at