The founder of the Signa Group, Rene Benko, has submitted his own application for bankruptcy. The Tyrolean real estate entrepreneur has filed his own application to open insolvency proceedings “as an entrepreneur,” said the spokeswoman for the Innsbruck Regional Court, Birgit Fink. According to lawyer Norbert Wess, the application was submitted on Wednesday evening.
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Fink expects the bankruptcy judge to make a decision about the opening either on Friday or at the beginning of next week. The Tyrolean, who was in serious trouble because of the Signa bankruptcy, took action himself. The Finanzprokuratur, as the lawyer of the Republic of Austria, recently filed an application for insolvency against him at the Innsbruck regional court. This week the insolvency judge should announce whether this will be approved or not and whether there will therefore be actual insolvency. A so-called “insolvency opening meeting” took place in mid-February.
It’s about outstanding financial debts worth millions. This means that not only are significant parts of the Signa Group insolvent, the 46-year-old could also be privately insolvent. For years he was listed by Forbes as a multiple billionaire.
The Credit Protection Association 1870 already expected on Tuesday that the investor himself could file an application to open insolvency proceedings. “If the reason for insolvency were insolvency and Mr. Benko himself filed an application for bankruptcy, he would be free to choose the type of procedure within the framework of the legal provisions,” explained Klaus Schaller, KSV1870 head of the West Region. “With insolvency as a sole proprietor, he can – depending on the procedure – agree with the creditors on a quota of 20 or 30 percent,” noted Creditreform managing director Gerhard Weinhofer. For the time being, it remained unclear which type of procedure Benko chose.
This is what the credit protection association says
The credit protection association also spoke out on Thursday and emphasized that with Benko filing for insolvency, he now admits that he is insolvent. The insolvency court must now check whether the self-application submitted complies with all insolvency law requirements. If the formal and substantive requirements are met, insolvency proceedings will be opened soon. However, if the content of the self-application does not comply with the legal requirements, the responsible insolvency judge will ask Benko’s legal representative to make any necessary additions.
KSV1870 head Schaller also provided information about the scope of the expected insolvency proceedings. This would include the consulting firm and all of Benko’s private assets. In addition: “The effects of insolvency proceedings opened in Austria also extend to assets located abroad. There are some restrictions that must be observed, but in principle all of a debtor’s worldwide assets are affected when proceedings are opened at the Innsbruck regional court.”
In any case, the insolvency of the sole proprietor Benko could still be exciting: Before the insolvency of Signa Holding, there were changes in the beneficiaries of the foundations. In extreme cases – such as changes in beneficiaries with close relatives – transactions can be reversed for up to ten years, confirmed Cornelia Wesenauer, head of the insolvency department for Vienna, Lower Austria and Burgenland at AKV Europa.
However, essential information about the insolvency is currently missing. However, it can be assumed that Benko will no longer be on the Forbes Billionaires List any time soon. Five years ago he was listed there as having assets of $5 billion.
