What: According to reports, the creditors of Galeria Karstadt Kaufhof should waive billions in the ongoing insolvency proceedings.

Why it is important: If creditors reject the concept, business operations will have to be stopped immediately.

The insolvency plan is set to be voted on March 27 by creditors.

The leadership requires landlords, suppliers, and other creditors to waive a large part of claims to enable Galeria to start over. However, if creditors reject the concept, business operations will be stopped immediately.

The restructuring consultants expect insolvency claims entitled plan payments totaling 1.4 to 2.36 billion euros.

Creditors without collateral should only receive 2 to 3.5% of the amount owed to them if the insolvency plan is accepted while those with collateral face fewer losses.

The state economic stabilization fund (WSF) has supported Galeria with EUR 680 million in recent years and should receive around EUR 88 million from the sale of inventory and will also be involved in the sale of Galeria subsidiaries such as the Belgian chain Inno.

Galeria creditors should waive billions