VIENNA, Jan 15 Reuters A unit of Austrian property group Signa that holds many of its most prized assets, Signa Prime Selection, is able to fund its operations during insolvency proceedings, its administrator said on Monday, but questions remained over a looming cash shortage.

Signa is the biggest casualty to date of Europe39;s property crisis. Its holding group at the centre of a complex constellation of around 1,000 companies filed for insolvency in November. Two of its most important units, Signa Prime and Signa Development Selection, followed suit in December.

Built from nothing by 46yearold entrepreneur Rene Benko on the back of superlow interest rates, Signa expanded rapidly, building and buying property developments and retail chains mainly in Germanspeaking cities but also as far as the United States, where it is joint owner of New York39;s Chrysler Building.

The ongoing funding of Signa Prime Selection39;s operations is secured, according to the financial plan presented, law firm Abel said in a statement during Signa Prime39;s first creditors39; meeting, a step in the insolvency proceedings. Signa Development39;s first creditors39; meeting was due later on Monday.

Signa Prime can continue to avail itself of the selfadministered form of insolvency proceedings, the administrator overseeing the process informed creditors at the meeting, creditors39; associations which were present said. That requires the company39;s assets to still be worth a certain amount….