The traditional company had already applied for reorganization proceedings with self-administration on Thursday. The company is to be continued. Creditors are being offered a quota of 30 percent, payable within two years from the acceptance of the reorganization plan.

A Look at Palmers Branches

"The reorganization administrator will now, in collaboration with the debtor, examine which branches can be continued cost-effectively or profitably," said Alexander Greifeneder from KSV 1870. "In addition, the results of negotiations with potential investors regarding the financing of the proposed reorganization plan are awaited."

AKV creditor protector Cornelia Wesenauer, on the other hand, wants to "take a close look" at the requested self-administration. However, it is also central for her to see how "far the investor talks have progressed," Wesenauer told APA. The investor is currently unknown.

The lingerie retailer has not accepted its own green voucher coins since Thursday. Theoretically, Palmers could still accept coins until the insolvency opening, according to the credit protector. "I would not advise the company to do so," said Wesenauer, referring to the issue of creditor preference.

Loan of 14.4 Million

In its insolvency application, Palmers quantified its debts (liabilities) at around 51 million euros and its assets (assets) at 11.50 million euros. Due to the insolvency, a 14.4 million euro loan secured by the COVID-19 Financing Agency of the Federal Government GmbH (COFAG) is now automatically due. According to media reports, the loan is 90 percent secured by COFAG and thus state-backed. In mid-2024, COFAG was dissolved, and all rights and obligations of COFAG from funding contracts were transferred unchanged to the federal government. The Ministry of Finance did not initially comment on the Palmers loan and COFAG case upon APA's request.

The SME advisor financial ombudsman identifies many open questions regarding the Palmers loan issuance, including the COFAG guarantee, and has therefore filed a complaint with the Financial Market Authority (FMA). They want to find out "whether the minimum standards of the FMA were adhered to when granting this loan or whether the granted bridging loan paved the way for the company's bankruptcy." The question is, "was the repayment of the loan - within the framework of the then forecast - ensured or not," said the advisor. At the time the loan was granted, Palmers only had a cash flow of around 0.2 million euros.

(APA/Red)

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