In a startling reversal of fortune, René Benko once celebrated as a billionaire real estate mogul and the mastermind behind the Signa Group has officially declared personal insolvency. This declaration comes hot on the heels of the Signa Group’s own insolvency. Just one year ago, Forbes listed Benko as a billionaire with luxurious assets, including a yacht and a jet. Austria had already lodged an insolvency petition against him at the end of January 2024, predominantly over unpaid tax debts.
Benko has proactively filed for personal insolvency as a sole proprietor at the regional court in Innsbruck, a move confirmed by his legal counsel to Austrian media outlets. This strategic legal maneuver is seen as Benko’s bid to navigate the complexities of insolvency with potential advantages in his favor. The move is a response to the initial insolvency petition filed against him by the Republic of Austria, which raised concerns among financial authorities regarding Benko’s commitment to inject funds into Signa Holding‘s reorganization process amidst fears they might be sidelined or disadvantaged as creditors.
Read our reports about Rene Benko here.
The Innsbruck Regional Court had already convened an insolvency opening hearing on February 13, following the Republic’s petition. Despite Benko’s absence from the hearing, the court has deferred its decision, indicating that further documentation from both parties was necessary to thoroughly assess the situation. With a deadline set for March 5 for the submission of these documents, the court is expected to commence proceedings soon.
Read our reports on Signa Group here.
Benko’s self-filing signifies an attempt to exert control over the form of the insolvency proceedings. Depending on the court’s assessment, Benko could opt for restructuring proceedings with self-administration, mirroring the approach recently observed with Signa. However, the distinction between creditor-initiated bankruptcy proceedings and self-filed applications means Benko’s personal assets are at stake, potentially facing liquidation if the court deems it necessary.
As the Innsbruck regional court gears up to make a decision, the financial saga of René Benko, once a paragon of success in the real estate world, has taken a dramatic turn. With his private fortune now implicated, Benko’s tale serves as a cautionary narrative about the volatile intersection of personal wealth, corporate insolvency, and legal accountability.
