The Austrian investor René Benko must face another trial on December 10th for alleged damage to his creditors. This was announced by the Innsbruck regional court. A second day of negotiations is planned for December 16th.
The public prosecutor’s office accuses the 48-year-old former billionaire of wanting to hide valuables such as luxury watches and 120,000 euros in cash from his creditors in view of the impending bankruptcy of his Signa Group.
Damage of 370,000 euros
The assets mentioned were hidden in a safe in a relative’s house, according to the prosecution. A co-defendant is said to have contributed to the crime. The total damage amounts to 370,000 euros. This means that the penalty range is up to ten years in prison. In Austria the crime is called fraudulent Krida.
In the first similar trial, the once celebrated investor was sentenced to two years in prison by the Innsbruck regional court in October. Both the public prosecutor and the defense have filed an appeal for nullity. The judgment is therefore not legally binding. Benko had pleaded not guilty in the trial.
Billions in claims from 3,000 creditors
Meanwhile, the creditor protection association Creditreform has presented an updated balance sheet on the bankruptcy of the real estate and trading group Signa, founded by Benko. There are a total of around 3,000 creditors, said Creditreform managing director Gerhard Weinhofer.
They made demands of around 40 billion euros, of which almost 12 billion euros were recognized. This also includes demands from individual Signa companies among themselves. Coming to terms with the largest bankruptcy in Austria’s history will take at least ten years, said Weinhofer.
In the fall of 2023, the Signa conglomerate of more than 1,130 companies gradually slipped into insolvency. Rising interest rates and purchases considered risky, such as those of the German department store groups Karstadt and Kaufhof, had undermined the business model.