Signa property holding group files for bankruptcy

9 months ago 33

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“Despite considerable efforts in recent weeks, the liquidity required for out-of-court restructuring could not be secured to a sufficient extent,” the group said. [EPA-EFE/CHRISTIAN BRUNA]

The business empire of Austrian mogul René Benko is bankrupt and filing for bankruptcy, the group announced on Wednesday, adding that operations would continue for the time being.

Going forward, a consortium of investors led by Austrian construction mogul Hans Peter Haselsteiner is looking to restructure the company. The collapse has been attributed to faltering retail businesses amid other external factors, like increasing interest rates.

“Despite considerable efforts in recent weeks, the liquidity required for out-of-court restructuring could not be secured to a sufficient extent,” the group said. Today, it is valued at about €15 billion.

Benko, who hails from Tyrol, has not been directly involved with running the company in years but has maintained close ties with past governments. Former Chancellor Sebastian Kurz has been implicated in the bankruptcy for being owed €1.5 million in consulting fees.

The company’s most famous properties include Hotel Hyatt in Vienna, Hamburg’s Elbtower, and parts of NYC’s Chrysler Building.

(Nikolaus J. Kurmayer | Euractiv.de)