René Benkos Signa Holding GmbH will file for bankruptcy today, Wednesday, at the Vienna Commercial Court. Accordingly, the real estate and department store speculator wants to realize a self-governance restructuring process to achieve “orderly continuation of business operations.”
According to information from krone.at, René Benko had already fought with all his might in the hours before to retain power in his financially ailing Signa Group: the financial juggler, whose complicated network of companies is known to be threatened by a bankruptcy domino, had his lawyers appear before the commercial court to negotiate the resolution of the insolvency of the important Signa Holding.
Benko wants to rule
Tenor: Benko wants – under all circumstances – a bankruptcy ‘under self-management’. In such a procedure, his directors remain in control and he can continue to govern from the background.
Insolvency experts know: in self-administration restructuring proceedings, bankruptcy judges and court-appointed administrators have fewer options to reprimand Benko’s directors with the necessary severity and to take on possible challenges in the interests of creditors.
For example, if there have been recent fire sales to the detriment of creditors, Benkos Signa could continue to spread the cloak of silence about possible dubious deals.
Benko came into public conversation on Monday with a luxury shopping trip. The property juggler was photographed by ‘Bild’ returning from Barcelona to Innsbruck this weekend in his oversized Signa private jet. His wife carried a Chanel handbag worth 8,000 euros on her arm.
According to media reports, the Signa Group is said to have accumulated a total of 15 billion euros in debt.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
