In the course of the insolvency proceedings, the creditors of the department store company have to waive claims in the billions.
(Photo: dpa)
Dusseldorf, Essen Ultimately, the creditors of Galeria Karstadt Kaufhof had no choice: they had to agree to the insolvency plan. The around 80 representatives who attended the creditors’ meeting in Essen on Monday gave their approval. Because otherwise the damage would have been even greater for them.
“If the plan is rejected, business operations will have to be stopped immediately,” the insolvency plan states unequivocally. And then there would have been practically nothing left for most creditors. After all, there is still a “pacification contribution” of 50 million euros.
For creditors who are not primarily secured, there is an insolvency rate of just two to 3.5 percent. That means they have to forego more than one billion euros in claims. And one of the biggest victims is the German taxpayer.
In total, Galeria received almost one billion euros in public money
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