Catastrophic bankruptcy of Hallmann company leaves a staggering debt of 226 million dollars.
In the heart of Vienna, the Commercial Court has officially declared the insolvency of Süba AG, a real estate developer associated with investor Klemens Hallmann [1]. The main catalyst for this insolvency is a challenging and toxic market environment that has significantly impacted economic conditions in the real estate sector.
With liabilities amounting to approximately 226 million euros and assets reported at under 8.6 million euros, Süba AG faces a substantial insolvency gap [1]. This unfortunate event affects numerous creditors, including those involved in Hallmann's subsequent insolvency filings in August 2025, with around 102 creditors and claims totalling 95 million euros [1]. However, it's important to note that Hallmann Holding, the overarching group, remains unaffected by these insolvencies.
In an effort to reorganise, Hallmann aims for a self-administration procedure to protect creditor interests. The plan includes offering a quota of 30 percent, with the intent to sell existing assets such as properties and company shares within the regulatory procedure framework to satisfy creditors as best as possible [1].
In light of these developments, Hallmann Holding has decided not to rely on investor capital or special financing forms. The reorganization also includes scaling back the development of new projects. The insolvency plan for Süba AG is expected to be financed through the continued operation of the company, with support from an investor, or through an "orderly and structured realization of real estate projects" of the non-insolvent subsidiaries [1].
Looking ahead, the focus of the real estate business will shift towards existing properties. Hallmann Holding plans to focus more on logistics companies, apartment hotels, and student housing. The report and inspection hearing for this reorganisation is scheduled for June 12, and creditors can submit their claims by May 30 [1].
References: [1] KPMG, "Klemens Hallmann's real estate empire in crisis: Insolvency of SÜBA AG and restructuring plans for Hallmann Holding," 2025. [2] Wiener Zeitung, "Real estate market difficulties hit Hallmann's empire: Insolvency of SÜBA AG and restructuring plans for Hallmann Holding," 2025.
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