Was the Signa’s construction built on credit?
“Yes, Signa’s business model was very much based on loans from banks and loans from investors,” says Weinhofer. “That worked well for a long time, even with the ECB’s low interest rate policy.” But from 2022 onwards, it became increasingly difficult for Benko to raise money for his projects. He had to accept ever higher interest rates. He also had to repeatedly pay out old investors and find and bring in new investors.
What mistakes did Benko make?
“His biggest mistake was getting into the trading business in addition to real estate,” says Weinhofer. The German retail chain Galeria Kaufhof Karstadt went bankrupt three times, the insolvency of its listed online sports chain Signa Sporte United destroyed around three billion euros in assets and the takeover of the furniture retail chain Kika/Leiner ultimately ended in bankruptcy.
What are the biggest bankruptcies in Signa?
According to Creditreform, 8.61 billion euros in claims were registered with Signa Holding, 12.8 billion euros with Signa Prime, 2.29 billion euros with Signa Development and 854 million euros with the Benko Family Private Foundation. According to Creditreform, all Signa companies together, including a hundred bankruptcies in Germany, have liabilities of around 25 billion euros.
Can the Signa companies be restructured?
The holding company, Signa Holding, is now bankrupt and is being liquidated. Signa Prime and Signa Development each received a mass loan so that they do not have to sell their properties in emergency purchases. Both companies are currently in so-called trust restructuring proceedings. The trustees ensure that the properties are sold in the next two to five years and that all proceeds go to the creditors. These have a quota of 30 percent to 40 percent.
Is René Benko also personally suing?
The sole proprietor Benko has slipped into bankruptcy, but not the private individual. Nevertheless, he is liable for the debts as an entrepreneur with his private assets.
What assets does Benko have?
He has neither real estate assets nor investments in Austria. Furthermore, he is not a beneficiary of the Benko Family Private Foundation or the Laura Private Foundation.
What does Benko actually deserve?
Signa Holding paid him a gross monthly salary of 60,480 euros. He also received a bonus of 2.5 percent of Signa Holding’s earnings, which was probably in the double-digit million range. In addition, he collected between 200,000 and 300,000 euros per year from several consulting contracts.
What does René Benko earn today?
Since February 2024, he has been employed at Laura Asset Eins GmbH, a company from the Laura Private Foundation, which is attributed to his family. According to the insolvency proceedings, he receives a monthly net income of 3,700 euros. According to his own statements, he can only make a living through the support of his family, especially his mother.
Where is René Benko being investigated?
He has been under investigation in Munich since November 2023, as well as in Liechtenstein and now also in Austria. He is being investigated in Munich and Vaduz on suspicion of money laundering. In Munich he is said to have collected one billion euros from banks and investors for a project, but gave greatly inflated information about future rental income in order to obtain higher loans at better conditions. The allegations are denied.
What is he accused of in Austria?
In Austria, the WKStA is leading the investigation against Benko on suspicion of fraud. In May/June 2023, Benko is said to have persuaded a bank to extend a 25 million euro loan without informing them about Signa’s difficulties. Benko denies the allegations.
Did Rene Benko go into hiding?
No, he lives in Innsbruck, as his lawyer Norbert Wess confirms. That is the center of his life. His three children go to public schools in Innsbruck.
Should Benko expect to be arrested in Austria?
Probably not, he cooperates fully with the authorities. According to a letter from his lawyer, it is unreasonable to assume that he wanted to influence witnesses and cover up any traces. There are also no reasons for pre-trial detention such as the risk of collusion and commission of crimes because the Signa Group is under the control of insolvency administrators.
There is also no risk of escape. According to reports, Benko is not currently traveling abroad, including to Lake Garda, where he owns a stately villa. The risk of being arrested abroad is higher. He could be arrested and extradited in Italy on the basis of a German arrest warrant. In this country it is pretty safe; Austria does not extradite its own citizens to other countries.