The Insolvency Proceedings of Signa founder René Benko: What You Need to Know

First Meeting Today After Filing Bankruptcy Against Benko

The Financial Procuratorate in Austria has filed for bankruptcy against Signa founder René Benko. The insolvency opening meeting is scheduled to take place today at the regional court in Innsbruck. However, it has been stated that the meeting will not be public and will not be open to media. Benko is not required to be present in person according to the law.

The financial situation and assets of Benko will be discussed at the meeting, but a decision on bankruptcy is not guaranteed to be made on this day. It must first be determined whether insolvency actually exists. If not, the application will be rejected. The decision will be announced by the regional court through a media broadcast.

The reported insolvency application in January was based on Benko’s failure to fulfill a deposit obligation in the company’s restructuring process. There are also open financial claims against him, and his tax advisors have applied for a deferral. Tax audits are currently underway in the Signa Group.

In terms of Benko’s guarantee for payment, the first installment was paid by the insolvency administrator, but the remaining amount is uncertain due to speculation that Signa may not be able to pay the amounts owed.

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