It is highly doubtful whether real estate juggler René Benko was ever a billionaire. Just a few days ago, the renowned business magazine ‘Forbes’ reported on the enormous capital losses resulting from Signa’s bankruptcy. He is now no longer allowed to use the title ‘billionaire’ at Forbes.
The American magazine, which annually compiles the list of the ‘richest people in the world’, made its decision based on the bankruptcy filing of Benkos Signa Holding and the ‘numerous other evidence that things are not going well’. However, it is emphasized that Signa has failed to obtain an explanation.
For the ailing group – some companies in the network, such as Signa Holding, have already filed for bankruptcy in Austria and Germany – significant savings are needed to make the desired restructuring successful. According to reports, preparations are already being made for the immediate cessation of all sub-operations that are not absolutely necessary for the holding company’s business and the immediate sale of all associated assets.
Streamlining and use of resources
This means that the curator wants to realize everything that is not necessary for the functioning of the holding company as quickly as possible in order to implement the restructuring. It’s about streamlining the real purpose of the business.
Shock for Signa’s creditors
Signa’s creditors who had relied on Signa Holding’s intrinsic value of 4.2 billion were shocked last Wednesday by the bankruptcy declaration: of the amount of 7.7 billion euros with which Signa Holding’s assets (mainly real estate) were recently sold by the TPA have been valued, as on September 30, 2023 there was still a meager remainder of no less than 314 million euros.
The debt has exploded from 3.5 to 5 billion. Within nine months. So what should have been 4.2 billion in assets turned into an over-indebtedness of 4.9 billion.
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.
