Cigna Bankruptcy: Banks in Upper Austria were also affected

Commercial

Now insolvent Cigna companies reportedly owe billions in local banks. As a report today in the German “Bild” newspaper shows, the four largest banks in Upper Austria are said to be affected. According to “Bild”, there are almost 280 million euros in outstanding loans.

The tangled web of Cigna companies will take a long time to unravel. But according to German media reports, a little more light is being shed on the darkness today. That is, when it comes to the question of which bank is on Cigna's creditor list and how much insolvent companies owe.

Apart from four big banks, others were affected

From Upper Austria, Raiffeisenlandesbank Oberösterreich AG, Oberbank AG, Sparkasse Oberösterreich and HYPO Oberösterreich are on the lender list. There are also Raiffeisen Wels eGen and Raiffeisenbank Region Bad Leonfelden. According to “Bild” newspaper, the total is almost 280 million euros.

It is clear that domestic banks have invested or have invested to varying degrees in Cigna's corporate groups. For example, at Raiffeisenlandesbank, it is about business in the real estate sector. The “Bild” newspaper reports that outstanding loans at Raiffeisenlandesbank Oberösterreich amount to 182 million euros. According to a report by “Oberösterreichische Nachrichten”, the loan amount is now said to be significantly lower, in the double-digit million range. Raiffeisen did not want to say anything about the size of the investment today – citing bank secrecy.

Oberbank confirms its commitment to Cigna for ORF Upper Austria, in the mid-double-digit million range. The bank says it involves two real estate transactions.

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At the time of going to press there was no response from Hypo and Sparkasse Oberösterreich to a related query from ORF Oberösterreich.

Banks are usually at the Land Registry

According to experts, real estate loans to Cigna cannot be expected to cause significant difficulties for large domestic banks. One reason: Real estate loans are usually well-protected with registration in the Land Registry. In case of fire sale, the bank is served first.

The situation is different in Cigna's trading transactions. Lenders' protection may be worse here. According to reports, these are mainly German banks.

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