Image: (APA/HELMUT FOHRINGER)
The entrepreneur, who debuted on the “Forbes Billionaires List” in 2019 with assets of $5 billion (4.6 billion euros), is said to be “underneath” as a result of the difficulties in his Signa Group Pressure”. It remains to be seen whether and to what extent Benko can free himself from the situation.
As far as Benko’s personal assets are concerned, he is currently left with at least one yacht worth more than 39 million euros, as the yacht valuation expert “VesselsValue” reported to the magazine; as well as an art collection with works by Pablo Picasso and Jean-Michel Basquiat. Benko is apparently trying to sell part of his art collection to save his company from going under. “The question is whether he can protect these assets from creditors and how long he will be able to do so.”
Biggest bankruptcy in Austrian history to date
At the end of November, according to US magazine estimates, Benko’s fortune had shrunk by more than half from around $6 billion to $2.8 billion within just a few months. The billionaire had initially slipped from 425th to 1,105th place on the Forbes list. Now he’s outside. So he seems to have a net worth of less than a billion.
Benko has built up a fortune over the years based on some of the most valuable real estate in the world, as Forbes notes. The insolvency of his investment company Signa Holding became the largest bankruptcy in Austrian history – and further defaults could follow.
At the end of November, the Austrian entrepreneur’s Signa Holding, which through its subsidiaries holds shares in properties such as the Chrysler Building in New York, the KaDeWe luxury department store in Berlin and the luxury Park Hyatt Vienna hotel, filed for bankruptcy because there were no short-term financial resources to maintain business operations . According to the bankruptcy petition filed with the Vienna Commercial Court, the holding company’s liabilities amounted to 5 billion euros, almost double its assets of 2.77 billion euros.
Signa is under enormous pressure
But that’s just the beginning, writes Forbes. The Signa empire – like Benko himself – is under enormous pressure. Rising interest rates, geopolitical crises and record inflation have left many real estate investors, including Benko, struggling. “But the 46-year-old, who built up his portfolio largely with borrowed capital and gained access to Europe’s elite through his charm, seems to be getting into a lot of trouble.” How serious the situation is is not entirely clear. This is also due to Signa’s complex, largely opaque network of companies and subcontractors.
According to the company website, the Signa Group as a whole still claims to have gross assets of 27 billion euros. However, it is not explained how this number comes about, according to Forbes. The largest subsidiaries, Signa Prime Selection and Signa Development Selection, have not yet filed for bankruptcy, it is emphasized, “although many experts believe that it is “It’s just a matter of time before the two follow suit.”
Due to the insolvency of Signa Holding and many other signs that things were not going well, Forbes decided to remove Benko from the Forbes Billionaires List.
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