According to Weinhofer, Signa’s construction heavily relied on loans from banks and investors. 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.
Signa Holding went bankrupt in 2021 with claims of 8.61 billion euros, while Signa Prime went bankrupt with claims of 12.8 billion euros. Signa Development also filed for bankruptcy with claims of 2.29 billion euros, and the Benko Family Private Foundation filed for bankruptcy with claims of 854 million euros. In total, 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 fraud in Austria. There is no indication that he is in hiding; 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
