Signa’s construction was heavily reliant on loans from banks and investors, according to Weinhofer. This model worked well for a long time, especially with the ECB’s low interest rate policy. However, from 2022 onwards, it became increasingly difficult for Benko to secure funds for his projects, leading to higher interest rates and the need to constantly find new investors and pay out old ones. One of Benko’s biggest mistakes was expanding into the trading business in addition to real estate, which led to several bankruptcies and losses of billions of euros.
The biggest bankruptcies in Signa include claims of 8.61 billion euros with Signa Holding, 12.8 billion euros with Signa Prime, 2.29 billion euros with Signa Development, and 854 million euros with the Benko Family Private Foundation. Signa companies have liabilities of around 25 billion euros, including around a hundred bankruptcies in Germany. The companies are currently undergoing trust restructuring proceedings to sell properties and repay creditors.
Despite Signa Holding’s bankruptcy, Benko himself has not filed for personal bankruptcy. However, he is liable for the debts as an entrepreneur. Benko no longer has real estate assets or investments in Austria and is not a beneficiary of family foundations. He previously earned a significant salary and bonuses from Signa Holding, but now has a much lower income and relies on family support to make a living.
Benko is under investigation for money laundering in Munich and Liechtenstein, as well as for fraud in Austria. There is no indication that he is in hiding, as he resides in Innsbruck and cooperates fully with authorities. While there is a risk of arrest abroad, Austria typically does not extradite its citizens to other countries, so Benko is relatively safe in his home country.