René Benko, founder of the bankrupt Signa Group, is facing creditor claims totaling approximately 2.4 billion euros ($2.6 billion). This massive debt comes as many subsidiaries of his real estate and retail empire have filed for insolvency.
The amount of claims against insolvent Austrian entrepreneur René Benko has grown to about 2.4 billion euros ($2.6 billion). The founder of the now-bankrupt Signa real estate and retail group had previously faced claims of 2 billion euros. Now, Austrian and international investors are demanding an additional 400 million euros from the former billionaire, as his insolvency administrator stated after a hearing at the Innsbruck Regional Court.
However, the administrator has only recognized a fraction of these claims, amounting to around 47 million euros ($51 million). This sum could potentially increase during the insolvency proceedings. Additionally, rejected creditors may attempt to recover their money through civil litigation.
Limited prospects for repayment
According to the creditor association KSV1870, the insolvency administrator plans to sell Benko’s watches, a sports boat, and a jet ski. Furthermore, they are exploring whether the entrepreneur’s trademark rights could be monetized. The administrator is also attempting to access assets held in a private foundation. However, the insolvency administrator expects to generate only a few hundred thousand euros in total, rather than millions.
The Signa Group had built a large portfolio during the low-interest rate era, which included department store chains KaDeWe and Galeria. The complex corporate structure collapsed amid rising interest rates, energy prices, and construction costs.
