Administrator sues Signa auditor – wien.ORF.at

Wagner was appointed by the Commercial Court as a special administrator in the Cigna Holding bankruptcy proceedings. Basically, according to the report, Cigna Holding’s auditor did not object to withdrawing restricted deposits in Cigna Holding in 2021 and 2022. According to Wagner, Cigna Holding’s excess debt under bankruptcy law is said to be 384 million euros at the end of fiscal 2021 and around 972 million at the end of fiscal 2022.

According to “Curier”, Wagner accused BDO Assurance GmbH of not reporting the withdrawal of restricted deposits to Cigna Holding. PTO should take responsibility for this. The restructuring administrators have also engaged other auditors such as KPMG as auditors of Cigna Prime and Cigna Development. Also worth looking at is PwC and tax consultancy TPA. According to the report, the case against BDO is said to be 37 pages long and was served on BDO on June 27.

The main allegation is “prohibited withdrawal of deposits”.

“Had BDO properly performed its audits of Cigna Holding’s 2021 and 2022 financial statements, exercised its duty to speak up and not issued an unqualified audit opinion, bankruptcy proceedings would have been filed by Cigna Holding or its creditors (investors),” the legal action says. 2023 “Lenders would have avoided investing in Cigna Holdings or made investments that would have been due,” he said, not just in the fall, but during the 2021 balance sheet.

BDO shall be liable for the damage caused by the difference in assets between the 2021 balance sheet of April 27, 2022 (or the audit report of the June 28, 2022 balance sheet), as the case may be. , 2023) and bankruptcy proceedings against Cigna Holding will commence on November 30, 2023. The main allegation is “prohibited withdrawal of deposits”. “There is no reason for BDO to assume that Cigna Holding GmbH can continue as a going concern during the respective (balance sheet) audit.”

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Cigna Holding went bankrupt earlier

By law, Cigna Holding is entitled only to distribute the retained profits of subsidiaries. All other distributions are prohibited. In fact, Cigna Holding is said to have received funding (loans, loans) of 410 million euros from subsidiaries in 2021 and around 1.03 billion euros in 2022. According to special administrator Wagner, these loans of Cigna Holdings to its subsidiaries were “immediately paid and could not be deferred or offset”.

BDO “does not consider this restricted deposit to be withdrawable.” During the audit of the annual financial statements for 2021 and 2022, the holding was “insolvent, over-indebted under bankruptcy law, risk to continued existence and need for restructuring”.

BDO stands by its obligation to maintain confidentiality

BDO’s final audits were also “useless and harmful”, which is why Wagner is suing BDO for repayment of the sum of 249,600 euros. But even in the absence of an insolvency situation, BDO remains liable.

According to the newspaper, Wagner argues that the loans made by the subsidiaries to parent Cigna Holdings do not stand up to the so-called arm’s-length comparison. The shareholder “received something that Cigna Holding had never offered to an external third party (…) in this form,” it continues. Therefore, breach of deposit refund restriction must be ensured.

When contacted by The Courier, BDO Assurance said it could not comment. “We auditors are bound by very strict confidentiality obligations.”

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