VIENNAFRANKFURT, Reuters Property and retail giant Signa declared insolvency on Wednesday after lastditch attempts to secure fresh funding failed, making it the biggest casualty so far of Europe39;s property crash.

Controlled by Austrian magnate Rene Benko, the group is an owner of New York39;s Chrysler Building as well as several highprofile projects and department stores across Germany, Austria and Switzerland.

Signa Holding39;s debts amounted to around 5 billion euros, according to creditor protection associations KSV1870 and Alpenländischer Kreditorenverband AKV, with 42 employees and 273 creditors impacted by the proceedings.

The multibillioneuro group, whose reach spans from Germany39;s bestknown department store, Berlin39;s KaDeWe, to the country39;s top highstreet chain Galeria and a skyscraper project, is set to send ripples across the continent39;s embattled property sector.

Austrian chancellor Karl Nehammer sought to play down the significance of the company39;s collapse. What39;s really important is that all those who invested here, especially the banks, stay stable, he told journalists. That39;s critical.

Research by analysts at Austria39;s Raiffeisen Bank International, one of Signa39;s biggest lenders, warned earlier this week that its difficulties could trigger a wider drop in commercial property prices if it started to offload properties.

Signa39;s holding company in Austria said it would apply to a Vienna court to begin insolvency proceedings, and…