Bankruptcy proceedings opened
Benko’s private foundation is also insolvent
March 28, 2024, 5:56 p.m
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After the personal bankruptcy of Austria’s former model entrepreneur, René Benko’s family foundation is now on the verge of collapse. The outstanding liabilities amount to a huge 854 million euros.
Following the personal bankruptcy of Signa founder René Benko, his family foundation has now also filed for bankruptcy. The two Austrian credit protection associations KSV1870 and the Alpine Creditors Association (AKV) announced that bankruptcy proceedings had been opened at the regional court over the assets of the Benko Private Foundation.
According to the bankruptcy filing, the foundation founded by Rene and his mother Ingeborg Benko in 2001 has outstanding liabilities amounting to 854 million euros. According to the credit protectors, the private foundation holds several holdings, including 10.1 percent in the insolvent Signa Holding, the holding company of the real estate group.
The Benko Family Private Foundation, along with the Ingbe Foundation and the Laura Private Foundation, is one of the most important foundations associated with the Tyrolean investor. A large part of the debt, almost 700 million euros, is said to relate to liabilities from option contracts in the event of insolvency. In addition, according to the KSV1870, two arbitration proceedings are currently pending in which the debtor is a co-defendant. The amount in dispute there amounts to around one billion euros. There are said to be around 21.5 million euros in assets.
Benko’s Signa Holding had previously filed for bankruptcy at the end of November. High construction costs, rising loan interest rates and home-made problems had left the trading and real estate group in trouble. Signa Holding also owns the Galeria department store chain in Germany. She filed for bankruptcy on January 9th.
Until a few months ago, Benko was considered one of the richest Austrians. According to the US magazine Forbes, Benko’s value reached a high of $6 billion (5.5 billion euros) in 2023. But at the beginning of December, Forbes removed him from its international billionaire list in view of Signa’s growing problems.