Gusenbauer, Kurz & Co. – Benko’s Rope Teams: First courted, now ignored

In 2019, the high-flyer also landed abroad. René Benkos Signa and an American company acquire the Chrysler Building, a world-famous real estate jewel in Manhattan – 319 meters high. A prestige building for 120 million. Before that we were in Abu Dhabi. “And then we bought the Chrysler Building from the local sovereign wealth fund,” Benko said. He was at his peak.

Courted by important people, including from the highest political circles. The advisory board of his Signa Holding consists of well-known bankers, advisors, ex-chancellor Alfred Gusenbauer (SPÖ) and ex-vice chancellor Susanne Riess-Hahn (FPÖ). She recently praised him as a “prudent and risk-conscious financial manager.” Investors and the ECB, which examines banks’ liabilities, see things differently.

It is becoming increasingly quiet around the acclaimed investor. He must withdraw. Without him there will be a restructuring. There’s a lot of work ahead. Now the 2022 balance sheet of the Signa Prime Group, the largest subgroup, has finally been announced. It has debts of more than 10.8 billion euros! The loss in 2022 was already no less than a billion. Sebastian Kurz is also a close confidant of Benko. The former ÖVP chancellor was in the Arab region with Benko and should act as a door opener for investors. There are said to have been further attempts since 2022.

Benko cannot admit mistakes
But how is Benko doing? Apparently his biggest problem is that he cannot admit his mistakes, we hear from investors. He should have come to terms with his own past. But he couldn’t.

Also it is difficult to make a 180 degree turn. “Benko is always focused on ‘things will continue’ and on optimism.” That’s great in growth phases, but not when you have to restructure a company and the banks no longer provide liquidity. The renovation has yet to take place and will take one to two years. According to investors, it is important that the sector regains confidence in the company. He ‘recorded his powerlessness professionally’. Gusenbauer, chairman of the Signa advisory board, declined to comment when asked.

Törggelen and Putin: memories fade
It’s a deep fall. In 2018, Vladimir Putin was a guest in Vienna. Sebastian Kurz introduced important people – including René Benko. In the words: “One of the most important entrepreneurs in the country.”

The nimbus crumbles. The famous Törggelen, a South Tyrolean Thanksgiving festival that attracts celebrities from all walks of life, could also be coming to an end. Benko’s Park Hyatt location in downtown Vienna is also for sale.

Outlook – Why Benko’s departure offers no alternative
On Thursday it was announced that major Signa investors demanded the founder’s withdrawal in an urgent letter. On Friday, Hans Peter Haselsteiner, who owns 15 percent of the shares, increased the pressure. On Saturday, investors were still negotiating the details of the exit. Benko wants investors to inject more money to prevent the group from going bankrupt – and get rid of debt at the same time. From the financiers’ perspective, the Tyrolean’s departure is absolutely necessary so that transparency can finally be achieved in Signa and the innovator Arndt Gvezelz can begin his clean-up work.

Why is there no alternative to Benko’s departure?
If he does not withdraw, there is a risk that many of the more than a thousand Signa companies will go bankrupt. In every bankrupt company, an administrator would have to realize the assets (often real estate). Above all, the trustee should control the payment flows and asset transfers between the Signa companies. And in the recently completed bankruptcy of Kika/Leiner, Benko discovered that trustees, creditor committees and bankruptcy judges are relatively humorless when it comes to liability. Signa needs to add 20 million to Kika/Leiner.