Published by Global Banking and Finance Review
Posted on June 24, 2025
VIENNA (Reuters) -Austrian anti-corruption and economic crime prosecutors have wrapped up their initial investigation into the collapse of the Signa property empire and filed a report so that a decision on potential prosecutions can be made, they said on Tuesday.
In a statement, they said there were four new strands, including an investigation into Signa founder Rene Benko and persons unknown on suspicion of favourable treatment to a creditor over a roughly 15 million euro ($17.4 million) repayment relating to a loan to Signa Prime at a time when that Signa unit was insolvent.
Other investigations involve alleged fraud relating to rental of a luxury chalet in the Austrian alpine village of Lech and a 17 million euro loan to Signa Holding, as well as allegations of inflated prices in a Viennese residential project.
Benko has previously denied allegations made against him.
The Austrian property magnate has been in custody since January and is accused of trying to hide assets from insolvency administrators and creditors.
Signa Holding filed for insolvency in November 2023, triggering a domino effect across its vast retail and real-estate portfolio with holdings ranging from the Chrysler Building in New York to shares in British department store company Selfridges.
On Tuesday Signa's insolvency administrators said they have arranged for out-of-court negotiations to begin from October to clarify liability issues in an attempt to avoid lengthy and costly court proceedings.
The aim is to reach agreements by the end of 2025, they said.
($1 = 0.8621 euros)
(Reporting by Francois Murphy;Writing by Rachel More;Editing by Alison Williams and David Goodman)
