The scandal surrounding the bankruptcy of Rene Benko‘s Signa Holding continues, FinTelegram reports. Once one of the largest European real estate developers, the company slipped into bankruptcy with liabilities of €5 billion. Two former chancellors, Alfred Gusenbauer and Sebastian Kurz, were also involved with Signa and wrote bills in the millions. Kurz is said to have established contacts with the Abu Dhabi sovereign wealth fund for Benko. The latter now wants a billion back from Signa.
Mubadala Wants Its Money Back
The Abu Dhabi sovereign wealth fund, Mubadala, is apparently demanding more than one billion euros back for investments from the Signa group of companies and its founder, René Benko. This was reported by the Austrian news magazine “Profil” on Wednesday with reference to documents from the restructuring administrator of Signa Holding.
According to the report, the investment company filed corresponding arbitration claims against the company. The reclaiming of an investment worth millions or funds that Signa and its companies are said to have received in the past. Mubadala apparently became active immediately after the insolvency of Signa Holding: three companies linked to the company filed a lawsuit for €713 million at the beginning of December. The companies are seeking interim legal protection (“emergency arbitration”) against “several Signa companies” and “Mr. René Benko ad personal.”
This was justified with the “violation of conditions from financing agreements”. The documents show that the reorganizers of Signa Holding around insolvency administrator Christof Stapf have applied for a stay of proceedings under Austrian law. However, this should only affect claims against the insolvent Signa Holding and not personal liabilities or claims against other solvent companies.
The documents also list a second arbitration proceeding filed on November 29. The Luxembourg-based “Am 1 Real Estate Investment Management SCSP“, also attributed to Mubadala by the reorganizers, is demanding a further €296 million from Signa. In total, more than one billion is being demanded. Both urgent arbitration proceedings fall under the jurisdiction of international commercial law and the International Chamber of Commerce (ICC).
Questionable Asset Transfers
Benko himself is also in the crosshairs because allegations of asset transfers have been made in the media. Shortly before the insolvency, he is said to have shifted luxury hotels on Lake Garda in Italy from Signa to his private sphere. The Villa Eden Reserve Resort is said to have been transferred from Signa Holding to Benko’s Ingbe Foundation.
Just a few days ago, Signa‘s top executive, Timo Herzberg, was relieved of his duties with immediate effect and dismissed with immediate effect without notice. He is said to have made strange transactions that would have benefited him personally at the expense of Signa. Apparently, Signa was a kind of self-service store for Benko and his team.
Political Connections
Rene Benko was known for seeking proximity to top politicians. He was also generous with money when it came to cultivating relationships. Benko was convicted of corruption in 2014 and received a conditional prison sentence of one year. However, this did not stop former Austrian chancellors Sebastian Kurz and Alfred Gusenbauer from doing business with Benko. Perhaps that was even a motivation. Benko is currently under investigation by the public prosecutor’s office on suspicion of corruption.
Signa Holding filed for insolvency on November 29 despite rescue attempts. Even before that, René Benko was no stranger to Abu Dhabi: according to media reports, the Austrian investor is said to have traveled to the United Arab Emirates several times, including in the company of former Federal Chancellor Sebastian Kurz.
In the meantime, it has become known that former Austrian Chancellor Alfred Gusenbauer is stepping down as Chairman of the Supervisory Board of Signa Holding. The ailing former politician is also withdrawing from other supervisory boards.
